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Rimini Street (RMNI) Gains But Lags Market: What You Should Know

·3 min read

Rimini Street (RMNI) closed at $5.81 in the latest trading session, marking a +0.52% move from the prior day. This move lagged the S&P 500's daily gain of 1.46%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the company had lost 3.67% over the past month, outpacing the Computer and Technology sector's loss of 7.96% and the S&P 500's loss of 6.94% 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%. 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Rimini Street is holding a Forward P/E ratio of 9.97. This valuation marks a discount compared to its industry's average Forward P/E of 38.91.

It is also worth noting that RMNI currently has a PEG ratio of 1. 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 was holding an average PEG ratio of 2.27 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 156, putting it in the bottom 39% 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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