Why Rambus (RMBS) Outpaced the Stock Market Today
Rambus (RMBS) closed at $68.60 in the latest trading session, marking a +0.16% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.04%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
The memory chip designer's shares have seen a decrease of 0.81% over the last month, not keeping up with the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.
The upcoming earnings release of Rambus will be of great interest to investors. The company is predicted to post an EPS of $0.45, indicating a 4.26% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $134.01 million, down 13.71% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.76 per share and a revenue of $556.63 million, signifying shifts of +0.57% and -2.64%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Rambus. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Rambus currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Rambus is holding a Forward P/E ratio of 39.03. This expresses a premium compared to the average Forward P/E of 28.53 of its industry.
We can also see that RMBS currently has a PEG ratio of 2.78. 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 average PEG ratio for the Electronics - Semiconductors industry stood at 4.23 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 20% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Rambus, Inc. (RMBS) : Free Stock Analysis Report
