RELL Stock Falls Despite Market Rise: Update

Yesterday, Richardson Electronics finished the trading day at $17.40. It went down 0.57% compared to the day before. This isn't as much as the S&P 500 which went up 0.88%. The Dow decreased by 0.11%. The Nasdaq, which focuses on technology companies, went down 3.76%.

The electronic components and communication products company's shares went up by 15.06% in the last month. The Computer and Technology sector increased by 6.17%, but the S&P 500 went down by 0.38%.

Richardson Electronics is getting ready for its next earnings release. Investors are hoping for good news. The company's EPS is expected to be $0.19. This is 38.71% lower than last year. The latest consensus estimate predicts revenue of $61.5 million. This is a decrease of 0.21% from last year.

Our Zacks Consensus Estimates show that we are projecting earnings of $1.46 per share and revenue of $265.3 million for the entire year. This would be a change of +43.14% and +18.11%, respectively, compared to last year.

It's important to mention the new changes in analyst estimates for Richardson Electronics. These changes show the constant changes in business trends. Positive revisions mean the analysts are optimistic about the company's business and profit.

Studies show that changes in estimated earnings affect stock prices in the short term. To take advantage of this, we created the Zacks Rank. Our ranking system considers these estimate changes and provides a straightforward rating model that can be acted upon.

The Zacks Rank system has a scale of 1 to 5, with 1 being a Strong Buy and 5 being a Strong Sell. This system has consistently performed well and is audited by outside sources. Stocks with a rank of 1 have an average annual return of 25%. However, in the past 30 days, our projection for Richardson Electronics' EPS has not changed. Currently, Richardson Electronics has a Zacks Rank of 5, indicating it is a Strong Sell.

Richardson Electronics has a Forward P/E ratio of 11.99. It's more than its industry's average of 7.41.

RELL's PEG ratio is 0.6. PEG ratio is like P/E ratio but also considers expected earnings growth rate. Electronics - Parts Distribution stocks have an average PEG ratio of 0.73 based on yesterday's closing prices.

The Electronics - Parts Distribution business is in the Computer and Technology field. It ranks at 223 in the Zacks Industry Rank, making it one of the bottom 12% of industries.

The Zacks Industry Rank ranks sectors based on the average Zacks Rank of the companies within them. The top 50% of industries perform twice as well as the bottom half.

Make sure to keep up with stock-moving measurements at Zacks.com. You'll find a lot more there.

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