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Richardson Electronics (RELL) Stock Moves -1.09%: What You Should Know
Richardson Electronics (RELL - Free Report) closed at $20.94 in the latest trading session, marking a -1.09% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.65%. At the same time, the Dow lost 1.63%, and the tech-heavy Nasdaq lost 6.65%.
Prior to today's trading, shares of the electronic components and communication products company had lost 7.47% over the past month. This has lagged the Computer and Technology sector's gain of 7.03% and the S&P 500's gain of 0.3% in that time.
Richardson Electronics will be looking to display strength as it nears its next earnings release. In that report, analysts expect Richardson Electronics to post earnings of $0.36 per share. This would mark year-over-year growth of 71.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $68.5 million, up 23.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.58 per share and revenue of $272 million, which would represent changes of +54.9% and +21.09%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Richardson Electronics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Richardson Electronics currently has a Zacks Rank of #3 (Hold).
Investors should also note Richardson Electronics's current valuation metrics, including its Forward P/E ratio of 13.4. This represents a premium compared to its industry's average Forward P/E of 7.97.
Also, we should mention that RELL has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RELL's industry had an average PEG ratio of 0.84 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.