Rambus (RMBS) Laps the Stock Market: Here's Why
In the latest market close, Rambus (RMBS) reached $63.40, with a +1.41% movement compared to the previous day. This change outpaced the S&P 500's 1.12% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.
Coming into today, shares of the memory chip designer had gained 7.72% in the past month. In that same time, the Computer and Technology sector lost 0.4%, while the S&P 500 gained 2.06%.
Investors will be eagerly watching for the performance of Rambus in its upcoming earnings disclosure. On that day, Rambus is projected to report earnings of $0.44 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $132 million, down 11.41% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.94 per share and a revenue of $585 million, signifying shifts of +8.38% and +4.73%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Rambus. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Rambus is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Rambus is currently exchanging hands at a Forward P/E ratio of 32.23. This denotes a premium relative to the industry's average Forward P/E of 31.62.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
