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

·3 min read

Rimini Street (RMNI) closed the most recent trading day at $6.06, moving -1.14% from the previous trading session. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the company had gained 8.5% over the past month, outpacing the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.

Wall Street will be looking for positivity from Rimini Street as it approaches its next earnings report date. In that report, analysts expect Rimini Street to post earnings of $0.14 per share. This would mark year-over-year growth of 450%. Meanwhile, our latest consensus estimate is calling for revenue of $99.86 million, up 9.01% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.58 per share and revenue of $411.23 million. These totals would mark changes of -52.07% and +9.83%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Rimini Street. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 remained stagnant within the past month. Rimini Street currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Rimini Street is holding a Forward P/E ratio of 10.57. For comparison, its industry has an average Forward P/E of 42.85, which means Rimini Street is trading at a discount to the group.

Also, we should mention that RMNI has a PEG ratio of 1.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.38 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 45% 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.

To follow RMNI in the coming trading sessions, be sure to utilize Zacks.com.


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