RAMBUS INC (NASDAQ:RMBS) – A Strong Growth Candidate Meeting Minervini’s Criteria

RAMBUS INC (NASDAQ:RMBS) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, a leader in semiconductor and IP solutions, demonstrates both technical strength and accelerating fundamentals, making it a compelling candidate for growth-focused investors.

Technical Strength: Meeting Minervini’s Trend Template

RMBS satisfies key technical criteria from Minervini’s strategy, which focuses on stocks in strong uptrends:

• Price Above Key Moving Averages: The stock trades above its 50-day ($57.25), 150-day ($56.52), and 200-day ($54.09) moving averages, confirming a bullish trend.
• Upward-Sloping Averages: The 150-day and 200-day moving averages are rising, reinforcing long-term strength.
• Relative Strength: With a ChartMill Relative Strength (CRS) of 74.46, RMBS outperforms 74% of all stocks.
• Proximity to 52-Week High: At $64.79, RMBS is within 6.3% of its 52-week high ($69.15), indicating strong momentum.
• Recent Performance: The stock has gained 9.8% over the past month and 37.7% over the last three months.

Fundamental Growth Drivers

Beyond technicals, RMBS exhibits strong growth fundamentals:

• Earnings Growth: EPS grew 78.4% year-over-year in the latest quarter, with accelerating trends in prior quarters (19.1% and 18.6% in Q-1 and Q-2).
• Revenue Expansion: Sales surged 41.4% in the most recent quarter, building on prior growth of 31.8% and 38.2%.
• Profit Margins: The company maintains healthy margins, with a trailing twelve-month (TTM) profit margin of 36.2%.
• Free Cash Flow Growth: FCF per share increased by 14.8% over the past year, supporting financial flexibility.

Technical Outlook

According to ChartMill’s technical report, RMBS has an overall rating of 8/10, reflecting a strong uptrend. The setup rating is also 8/10, indicating a consolidation phase with potential for a breakout above resistance at $65.99. A decisive move above this level could signal further upside.

For a deeper technical analysis, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks that fit this strategy.

Disclaimer

This is not investment advice. The analysis is based on observations at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.