Rambus (RMBS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Rambus (RMBS) closed at $59.29, marking a +1.02% move from the previous day. This move outpaced the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the memory chip designer had gained 11.05% over the past month, outpacing the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% 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. Our most recent consensus estimate is calling for quarterly revenue of $132.04 million, down 8.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $566.87 million, which would represent changes of +0.57% and -0.84%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Rambus. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Rambus is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Rambus is holding a Forward P/E ratio of 33.44. For comparison, its industry has an average Forward P/E of 26.82, which means Rambus is trading at a premium to the group.
Meanwhile, RMBS's PEG ratio is currently 2.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 4.82 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
