Back to top

Image: Bigstock

Regional Management (RM) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Regional Management (RM - Free Report) closed at $20.37, marking a +0.2% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 1.04%, while the tech-heavy Nasdaq added 0.67%.

Investors will be hoping for strength from RM as it approaches its next earnings release. The company is expected to report EPS of $0.45, down 35.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $88.44 million, up 4.94% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $369.33 million. These totals would mark changes of -81.05% and +3.83%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for RM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.63% lower. RM currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that RM has a Forward P/E ratio of 28.43 right now. For comparison, its industry has an average Forward P/E of 15.05, which means RM is trading at a premium to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 6% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


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


Regional Management Corp. (RM) - free report >>

Published in