Back to top

Image: Bigstock

RCM Technologies, Inc. (RCMT) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

RCM Technologies, Inc. (RCMT - Free Report) closed the latest trading day at $20.03, indicating a -1.23% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.93%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Shares of the company have depreciated by 0.49% over the course of the past month, underperforming the Business Services sector's gain of 1.6% and the S&P 500's gain of 2.17%.

Investors will be eagerly watching for the performance of RCM Technologies, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.44, showcasing a 4.35% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $60.59 million, indicating a 4.38% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.33 per share and revenue of $277.23 million, indicating changes of +10.43% and +5.32%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for RCM Technologies, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, RCM Technologies, Inc. possesses a Zacks Rank of #1 (Strong Buy).

In terms of valuation, RCM Technologies, Inc. is presently being traded at a Forward P/E ratio of 8.7. This expresses a discount compared to the average Forward P/E of 15.55 of its industry.

The Staffing Firms industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


RCM Technologies, Inc. (RCMT) - free report >>

Published in