3 Reasons Why Growth Investors Shouldn't Overlook Rambus (RMBS)

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Rambus (RMBS) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth preferred by growth investors [4] - Rambus has a historical EPS growth rate of 386%, with projected EPS growth of 23.5% this year, surpassing the industry average of 22.3% [5] Group 3: Cash Flow Growth - High cash flow growth is vital for growth-oriented companies, enabling them to fund new projects without external financing [6] - Rambus has a year-over-year cash flow growth of 6.4%, significantly better than the industry average of -7.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 104.2%, compared to the industry average of 10.4% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for Rambus have increased by 7.4% over the past month [9] Group 5: Overall Assessment - Rambus has achieved a Zacks Rank 1 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [11]