Richardson Electronics (RELL) closed at $26.03 in the latest trading session, marking a -1.77% move from the prior day. This move lagged the S&P 500’s daily loss of 0.12%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.05%.
Coming into today, shares of the electronic components and communication products company had gained 9.87% in the past month. In that same time, the Computer and Technology sector gained 8.67%, while the S&P 500 gained 5.93%.
Investors will be hoping for strength from Richardson Electronics as it approaches its next earnings release. The company is expected to report EPS of $0.29, down 3.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $64.5 million, up 19.49% from the year-ago period.
RELL’s full-year Zacks Consensus Estimates are calling for earnings of $1.31 per share and revenue of $260 million. These results would represent year-over-year changes of +28.43% and +15.75%, respectively.
Investors might also notice recent changes to analyst estimates for Richardson Electronics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Richardson Electronics currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Richardson Electronics is currently trading at a Forward P/E ratio of 20.23. This represents a premium compared to its industry’s average Forward P/E of 7.23.
We can also see that RELL currently has a PEG ratio of 1.01. 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. Electronics – Parts Distribution stocks are, on average, holding a PEG ratio of 0.9 based on yesterday’s closing prices.
The Electronics – Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.
To follow RELL in the coming trading sessions, be sure to utilize Zacks.com.
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Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report
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