Rambus (RMBS) Advances While Market Declines: Some Information for Investors

Rambus (RMBS) closed the latest trading day at $62.23, indicating a +0.68% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.2%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.11%.

Shares of the memory chip designer witnessed a loss of 4.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.99% and the S&P 500's gain of 3.32%.

Investors will be eagerly watching for the performance of Rambus in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.44, signifying steadiness compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $132 million, down 11.41% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.94 per share and revenue of $585 million, indicating changes of +8.38% and +4.73%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Rambus. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Rambus is currently a Zacks Rank #4 (Sell).

Investors should also note Rambus's current valuation metrics, including its Forward P/E ratio of 31.86. This denotes a discount relative to the industry's average Forward P/E of 32.7.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 26% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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