Rambus (RMBS) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with Rambus (RMBS) standing at $67.38, reflecting a -1.29% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.7%.
Prior to today's trading, shares of the memory chip designer had gained 9.02% over the past month. This has outpaced the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85% in that time.
Investors will be eagerly watching for the performance of Rambus in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.45, marking a 4.26% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $134.01 million, showing a 13.71% drop compared to the year-ago quarter.
RMBS's full-year Zacks Consensus Estimates are calling for earnings of $1.76 per share and revenue of $556.63 million. These results would represent year-over-year changes of +0.57% and -2.64%, respectively.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Rambus is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Rambus is at present trading with a Forward P/E ratio of 38.9. This valuation marks a premium compared to its industry's average Forward P/E of 27.4.
Investors should also note that RMBS has a PEG ratio of 2.77 right now. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 4.21.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
