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Richardson Electronics (RELL) Dips More Than Broader Markets: What You Should Know

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Richardson Electronics (RELL - Free Report) closed at $20.98 in the latest trading session, marking a -1.13% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.

Prior to today's trading, shares of the electronic components and communication products company had gained 0.09% over the past month. This has lagged the Computer and Technology sector's gain of 6.7% and outpaced the S&P 500's gain of 0.07% in that time.

Wall Street will be looking for positivity from Richardson Electronics as it approaches its next earnings report date. On that day, Richardson Electronics is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 80.95%. Our most recent consensus estimate is calling for quarterly revenue of $70.2 million, up 26.92% from the year-ago period.

RELL's full-year Zacks Consensus Estimates are calling for earnings of $1.60 per share and revenue of $273.6 million. These results would represent year-over-year changes of +56.86% and +21.81%, respectively.

Investors might also notice recent changes to analyst estimates for Richardson Electronics. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 1.27% higher within the past month. Richardson Electronics is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Richardson Electronics currently has a Forward P/E ratio of 13.26. Its industry sports an average Forward P/E of 7.8, so we one might conclude that Richardson Electronics is trading at a premium comparatively.

Meanwhile, RELL's PEG ratio is currently 0.66. 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. The Electronics - Parts Distribution was holding an average PEG ratio of 0.81 at yesterday's closing price.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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