Rambus (RMBS) Gains As Market Dips: What You Should Know
In the latest trading session, Rambus (RMBS) closed at $53.66, marking a +1.23% move from the previous day. This change outpaced the S&P 500's 0.23% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Heading into today, shares of the memory chip designer had gained 0.09% over the past month, outpacing the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.
Rambus will be looking to display strength as it nears its next earnings release. In that report, analysts expect Rambus to post earnings of $0.41 per share. This would mark a year-over-year decline of 10.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $130.99 million, down 9.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $562.78 million, which would represent changes of +0.57% and -1.56%, respectively, from the prior year.
Any recent changes to analyst estimates for Rambus should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rambus is currently a Zacks Rank #4 (Sell).
In terms of valuation, Rambus is currently trading at a Forward P/E ratio of 30.2. Its industry sports an average Forward P/E of 26.21, so we one might conclude that Rambus is trading at a premium comparatively.
Meanwhile, RMBS's PEG ratio is currently 2.05. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 4.56 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
