Rambus (RMBS) Stock Falls Amid Market Uptick: What Investors Need to Know
Rambus (RMBS) closed the latest trading day at $65.97, indicating a -0.47% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.02%.
The memory chip designer's stock has dropped by 5.3% in the past month, falling short of the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
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 $0.45 per share, which would represent a year-over-year decline of 4.26%. Meanwhile, our latest consensus estimate is calling for revenue of $134.01 million, down 13.71% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rambus. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 31.19. This signifies a premium in comparison to the average Forward P/E of 28.15 for its industry.
Also, we should mention that RMBS has a PEG ratio of 2.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.98.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 39% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
