Rambus (RMBS) Ascends While Market Falls: Some Facts to Note
Rambus (RMBS) closed at $58.97 in the latest trading session, marking a +0.14% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.25%.
The memory chip designer's stock has climbed by 3.64% in the past month, exceeding the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.
Analysts and investors alike will be keeping a close eye on the performance of Rambus in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2023. The company is predicted to post an EPS of $0.41, indicating a 10.87% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $130.99 million, reflecting a 9.35% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.76 per share and a revenue of $562.78 million, indicating changes of +0.57% and -1.56%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Rambus. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Rambus possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Rambus is presently trading at a Forward P/E ratio of 33.56. For comparison, its industry has an average Forward P/E of 27.21, which means Rambus is trading at a premium to the group.
It is also worth noting that RMBS currently has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 4.17.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
