Rambus (RMBS) Declines More Than Market: Some Information for Investors
Rambus (RMBS) closed at $62.74 in the latest trading session, marking a -1.83% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.34%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Shares of the memory chip designer witnessed a loss of 0.3% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.27% and the S&P 500's gain of 2.56%.
The investment community will be closely monitoring the performance of Rambus in its forthcoming earnings report. The company is forecasted to report an EPS of $0.45, showcasing a 4.26% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $134.01 million, showing a 13.71% drop compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rambus. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Rambus is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Rambus is presently trading at a Forward P/E ratio of 30.08. This expresses a premium compared to the average Forward P/E of 27.8 of its industry.
We can additionally observe that RMBS currently boasts a PEG ratio of 2.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry currently had an average PEG ratio of 2.88 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
