RCM Technologies, Inc. (RCMT) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw RCM Technologies, Inc. (RCMT) ending at $17.05, denoting a +0.24% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.1%.
The company's stock has climbed by 7.25% in the past month, exceeding the Business Services sector's loss of 4.91% and the S&P 500's loss of 4.29%.
Investors will be eagerly watching for the performance of RCM Technologies, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.56, marking a 5.66% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $74.27 million, up 3.24% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.19 per share and a revenue of $295.12 million, demonstrating changes of +7.88% and +6.01%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for RCM Technologies, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RCM Technologies, Inc. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, RCM Technologies, Inc. is presently being traded at a Forward P/E ratio of 7.77. This signifies a discount in comparison to the average Forward P/E of 14.82 for its industry.
The Staffing Firms industry is part of the Business Services sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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