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Should Value Investors Buy RCM Technologies (RCMT) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is RCM Technologies (RCMT - Free Report) . RCMT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.38. This compares to its industry's average Forward P/E of 15.77. Over the last 12 months, RCMT's Forward P/E has been as high as 15.75 and as low as 7.27, with a median of 9.26.
Finally, investors will want to recognize that RCMT has a P/CF ratio of 8.61. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RCMT's current P/CF looks attractive when compared to its industry's average P/CF of 13.30. Within the past 12 months, RCMT's P/CF has been as high as 14.40 and as low as 7.98, with a median of 9.11.
These are only a few of the key metrics included in RCM Technologies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RCMT looks like an impressive value stock at the moment.
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Should Value Investors Buy RCM Technologies (RCMT) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is RCM Technologies (RCMT - Free Report) . RCMT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.38. This compares to its industry's average Forward P/E of 15.77. Over the last 12 months, RCMT's Forward P/E has been as high as 15.75 and as low as 7.27, with a median of 9.26.
Finally, investors will want to recognize that RCMT has a P/CF ratio of 8.61. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RCMT's current P/CF looks attractive when compared to its industry's average P/CF of 13.30. Within the past 12 months, RCMT's P/CF has been as high as 14.40 and as low as 7.98, with a median of 9.11.
These are only a few of the key metrics included in RCM Technologies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RCMT looks like an impressive value stock at the moment.