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Rimini Street (RMNI) Dips More Than Broader Markets: What You Should Know

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Rimini Street (RMNI) closed at $6.66 in the latest trading session, marking a -1.48% move from the prior day. This move lagged the S&P 500's daily loss of 0.93%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the company had gained 14.19% in the past month. In that same time, the Computer and Technology sector lost 12.29%, while the S&P 500 gained 6.31%.

Rimini Street will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect Rimini Street to post earnings of $0.14 per share. This would mark year-over-year growth of 450%. Our most recent consensus estimate is calling for quarterly revenue of $99.86 million, up 9.01% from the year-ago period.

RMNI's full-year Zacks Consensus Estimates are calling for earnings of $0.58 per share and revenue of $411.23 million. These results would represent year-over-year changes of -52.07% and +9.83%, respectively.

It is also important to note the recent changes to analyst estimates for Rimini Street. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Rimini Street is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Rimini Street is currently trading at a Forward P/E ratio of 11.65. This represents a discount compared to its industry's average Forward P/E of 45.27.

It is also worth noting that RMNI currently has a PEG ratio of 1.17. 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. The Internet - Software was holding an average PEG ratio of 2.84 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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