Rambus (RMBS) Stock Drops Despite Market Gains: Important Facts to Note
Rambus (RMBS) closed the latest trading day at $68.15, indicating a -0.55% change from the previous session's end. This change lagged the S&P 500's 1.25% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.3%.
The memory chip designer's shares have seen an increase of 7.23% over the last month, surpassing the Computer and Technology sector's gain of 2.42% and the S&P 500's gain of 1.58%.
Analysts and investors alike will be keeping a close eye on the performance of Rambus in its upcoming earnings disclosure. The company's earnings report is set to go public on February 5, 2024. The company is predicted to post an EPS of $0.45, indicating a 4.26% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $134 million, indicating a 13.72% downward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Rambus. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 has moved 3.6% higher within the past month. Rambus is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Rambus is currently exchanging hands at a Forward P/E ratio of 31.15. Its industry sports an average Forward P/E of 29.22, so one might conclude that Rambus is trading at a premium comparatively.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
