Rambus Stock To $111?
Rambus (RMBS) stock has fallen by 22.8% in less than a month, from $113.61 on 27th Oct, 2025 to $87.70 now. What comes next? We believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive but Volatile opinion of the stock. Read Buy or Sell Rambus Stock to see how we arrive at this opinion.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, RMBS stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 42%, with median peak return reaching 69%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 4.9% |
| 3M | 16.2% |
| 6M | 26.1% |
| 12M | 41.9% |
Historical Dip-Wise Details
RMBS had 7 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 69% median peak return within 1 year of dip event
- 206 days is the median time to peak return after a dip event
- -17% median max drawdown within 1 year of dip event
| 30 Day Dip | RMBS Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | RMBS | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 42% | 69% | -17% | 206 | ||||
| 4042025 | -31% | -16% | 111% | 163% | -1% | 206 | ||
| 8222024 | -30% | -0% | 65% | 69% | -17% | 356 | ||
| 3122020 | -39% | -24% | 104% | 126% | -5% | 344 | ||
| 4232012 | -34% | -0% | 42% | 61% | -12% | 358 | ||
| 11162011 | -54% | 8% | -36% | 29% | -45% | 70 | ||
| 8102011 | -31% | -13% | -52% | 86% | -60% | 90 | ||
| 5172011 | -32% | -0% | -66% | 39% | -66% | 175 | ||
Rambus Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 31.0% | Pass |
| Revenue Growth (3-Yr Avg) | 17.3% | Pass |
| Operating Cash Flow Margin (LTM) | 47.0% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 191.1 | |
| => Cash To Interest Expense Ratio | 479.2 |
Not sure if you can take a call on RMBS stock? Consider portfolio approach
Portfolios Are The Smarter Way To Invest
Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.