Rambus (RMBS) Dips More Than Broader Markets: What You Should Know
Rambus (RMBS) closed at $56.02 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Heading into today, shares of the memory chip designer had gained 13.67% over the past month, outpacing the Computer and Technology sector's gain of 1.88% and the S&P 500's loss of 0.12% in that time.
Rambus will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 10.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $132.04 million, down 8.62% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $566.87 million. These totals would mark changes of +0.57% and -0.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Rambus. These revisions help to show the ever-changing nature 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Rambus is currently a Zacks Rank #4 (Sell).
Investors should also note Rambus's current valuation metrics, including its Forward P/E ratio of 32.5. This valuation marks a premium compared to its industry's average Forward P/E of 28.49.
Also, we should mention that RMBS has a PEG ratio of 2.21. 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 4.94 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RMBS in the coming trading sessions, be sure to utilize Zacks.com.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
