RF Industries Ltd

RF Industries reported stronger fiscal third-quarter results on September 14, with revenue rising 21% to $23.96 million for the quarter ended July 31, 2026, and operating income reaching approximately $1.8 million, up from $720,000 a year earlier. Gross margin increased to 35.6% from 34%, which management attributes to a shift toward customized cabling and integrated systems. Quarterly bookings totaled $22.5 million, below revenue, producing a book-to-bill ratio of roughly 0.94, while backlog stood at $18.6 million at quarter-end and rose to $19.8 million by September 14. Insider Monkey's database showed 14 hedge funds holding RF Industries at the end of the second quarter of 2026, up from 12 funds three months earlier.

RF Industries reported record quarterly revenue of $24 million in its fiscal Q3 2026 earnings call, with adjusted EBITDA margins reaching 11.1% and gross profit margin hitting 35.6%. Management expects Q4 sales to be roughly the same or above the record Q3 levels, supported by a backlog that currently stands at $19.8 million. The company's Direct Air Cooling business is projected to exceed $10 million in annual sales, serving as a primary growth engine for edge data center and AI infrastructure applications, while the small cell market began picking up momentum in Q3 and is expected to accelerate into fiscal 2027. Net debt improved through a $1.1 million increase in cash and a $400 thousand reduction in revolver borrowings, and inventory decreased to $13.2 million from $14.4 million sequentially. Management said carrier CapEx is projected to be largely flat but that RFI's growth is decoupled from headline spending due to increased share in densification and fiber projects.

Zacks Investment Research highlights four technology stocks trading below $20 per share that are well-positioned for growth in the second half of 2026, each carrying a Zacks Rank of #1 (Strong Buy) or #2 (Buy). Unisys, priced at $3.75, saw its 2026 earnings estimate rise 21.3% to 74 cents per share over the past 60 days, supported by a 45% surge in first-quarter new business total contract value and an expanded backlog of $2.96 billion. Daktronics, at $19.91, reported record fiscal 2026 sales of $838.7 million and a $356.2 million backlog, with its fiscal 2027 earnings estimate edging up 0.8% to $1.21 per share. PagerDuty, trading at $9.98, raised its full-year fiscal 2027 non-GAAP EPS guidance to $1.27-$1.32 and announced a $100 million share repurchase program, while its fiscal 2027 earnings estimate climbed 4% to $1.30 per share. RF Industries, at $17.81, posted fiscal second-quarter bookings of $26.3 million and a backlog of $20 million, with its fiscal 2026 earnings estimate rising 19% to 69 cents per share, aided by inclusion in the Russell 3000 Index.