Rambus (RMBS) closed at $57.20 in the latest trading session, marking a -0.1% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.42%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the memory chip designer had gained 6.61% over the past month, outpacing the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 1.02% in that time.
Rambus will be looking to display strength as it nears its next earnings release. On that day, Rambus is projected to report earnings of $0.41 per share, which would represent a year-over-year decline of 10.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $132.04 million, down 8.62% from the year-ago period.
RMBS's full-year Zacks Consensus Estimates are calling for earnings of $1.76 per share and revenue of $566.87 million. These results would represent year-over-year changes of +0.57% and -0.84%, respectively.
Any recent changes to analyst estimates for Rambus 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.
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. Rambus is currently a Zacks Rank #4 (Sell).
In terms of valuation, Rambus is currently trading at a Forward P/E ratio of 32.63. This represents a premium compared to its industry's average Forward P/E of 28.71.
Also, we should mention that RMBS has a PEG ratio of 2.22. 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 Electronics - Semiconductors industry currently had an average PEG ratio of 5 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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