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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 $5.97, moving -1.81% from the previous trading session. This move lagged the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.05%.

Prior to today's trading, shares of the company had gained 12.59% over the past month. This has outpaced the Computer and Technology sector's loss of 0.73% and the S&P 500's loss of 1% 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.

Any recent changes to analyst estimates for Rimini Street should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rimini Street is currently a Zacks Rank #3 (Hold).

Investors should also note Rimini Street's current valuation metrics, including its Forward P/E ratio of 10.48. This valuation marks a discount compared to its industry's average Forward P/E of 44.64.

It is also worth noting that RMNI currently has a PEG ratio of 1.05. 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. The Internet - Software industry currently had an average PEG ratio of 2.41 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 149, putting it in the bottom 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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