Rambus (RMBS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Rambus (RMBS) closed at $59.76, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 10.86%.
Heading into today, shares of the memory chip designer had gained 2.13% over the past month, lagging the Computer and Technology sector's gain of 2.6% and the S&P 500's gain of 3.98% in that time.
Rambus will be looking to display strength as it nears its next earnings release, which is expected to be July 31, 2023. On that day, Rambus is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 9.3%. Meanwhile, our latest consensus estimate is calling for revenue of $137.98 million, down 0.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.79 per share and revenue of $599.52 million. These totals would mark changes of +2.29% and +4.87%, respectively, from last year.
Any recent changes to analyst estimates for Rambus should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.69% higher. Rambus is currently a Zacks Rank #2 (Buy).
In terms of valuation, Rambus is currently trading at a Forward P/E ratio of 33.82. For comparison, its industry has an average Forward P/E of 27.42, which means Rambus is trading at a premium to the group.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
