Small-cap memory-chip maker Rambus punches above its weight. Although its run rate is just below $500 million, its memory chips and security and display architectures are integral to the rollout of artificial intelligence systems. On Monday, the Relative Strength (RS) Rating for Rambus stock rose to 76, up from 66 on Friday.
Rambus is in a buy zone and is among the top-ranked stocks in the 39-stock fabless semiconductor industry group.
The upgraded 76 RS rating shows that Rambus stock is among the top 25% of all stocks in terms of price performance over the past year. That's a welcome improvement, but its other ratings show it's much stronger than that one rating.
Rambus Boasts Best Possible Earnings Growth Rating
Rambus has a 97 Composite Rating, putting it in the top 3% of stocks overall, regardless of industry group. Better yet, it has a perfect 99 EPS Rating based on its surging profit growth. And it boasts a B+ Accumulation/Distribution Rating on an A+ to E scale. The B+ rating means that mutual funds, ETFs and the like are buying more of its shares than selling.
When To Sell Stocks To Lock In Profits And Minimize Losses
Rambus stock is in a buying range after climbing above a 58.42 entry in a cup with handle on Nov. 26. The proper buying range is up to 5% above the initial entry, around 61.34 in this case. Rambus stock was up fractionally Monday afternoon.
Top and bottom line growth moved higher last quarter. Earnings were up 125% to 54 cents per share. The prior three stanzas its EPS grew 48%, 70% and 35%. Revenue rose 38% in its most recent quarter to $145.5 million. The Street projects 23% EPS growth this quarter on 18% higher revenue.
No. 2 Behind Runaway Market Leader
Rambus earns the No. 2 rank among its peers in the Electronics-Semiconductor Fabless industry group, behind only AI leader Nvidia, according to IBD Stock Checkup. SiTime, Broadcom and Astera Labs are also among the group's highest-rated stocks.
The proprietary IBD Relative Strength Rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they launch their biggest runs. See if Rambus can continue to rise and hit that benchmark.
Please follow James DeTar on Twitter @JimDeTar
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