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Stock impact report

3 Industrials Stocks We Think Twice About [Yahoo! Finance]

Richardson Electronics, Ltd. (RELL) 
US:NASDAQ Investor Relations: rell.com/investor-relations
Company Research Source: Yahoo! Finance
They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 18.1% for the sector - higher than the S&P 500's 14.4% return. Regardless of these results, investors should tread carefully. The diversity of companies in this space means that not all are created equal or well-positioned for the inescapable downturn. Keeping that in mind, here are three industrials stocks we're steering clear of. Market Cap: $159 million Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Why Are We Out on RELL? Sales pipeline suggests its future revenue growth won't meet our standards as its backlog averaged 2% declines over the past two years Poor free cash flow margin of -0.4% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Wanin Show less Read more
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