Rambus (RMBS) Rises Yet Lags Behind Market: Some Facts Worth Knowing
In the latest trading session, Rambus (RMBS) closed at $60.87, marking a +0.03% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
Shares of the memory chip designer witnessed a gain of 7.04% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.56% and the S&P 500's loss of 2.1%.
Analysts and investors alike will be keeping a close eye on the performance of Rambus in its upcoming earnings disclosure. 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%. Alongside, our most recent consensus estimate is anticipating revenue of $130.99 million, indicating a 9.35% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $562.78 million, representing changes of +0.57% and -1.56%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Rambus. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rambus is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Rambus is presently trading at a Forward P/E ratio of 34.67. This expresses a premium compared to the average Forward P/E of 28 of its industry.
We can also see that RMBS currently has a PEG ratio of 2.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 4.19.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 43% of over 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.
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
