Here’s Why RCM Technologies, Inc. (RCMT) Fell More Than Broader Market
In the latest close session, RCM Technologies, Inc. (RCMT) was down 2.9% at $39.12. The stock’s change was less than the S&P 500’s daily loss of 0.59%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq decreased by 0.65%.
Shares of the company have appreciated by 41.27% over the course of the past month, outperforming the Business Services sector’s loss of 3.5%, and the S&P 500’s loss of 1.37%.
The investment community will be paying close attention to the earnings performance of RCM Technologies, Inc. in its upcoming release. The company is predicted to post an EPS of $0.63, indicating a 50% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $85.78 million, indicating a 22.04% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.07 per share and a revenue of $359.88 million, indicating changes of +22.8% and +12.67%, respectively, from the former year.
Any recent changes to analyst estimates for RCM Technologies, Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 16.59% higher. RCM Technologies, Inc. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, RCM Technologies, Inc. is currently being traded at a Forward P/E ratio of 13.12. For comparison, its industry has an average Forward P/E of 17.81, which means RCM Technologies, Inc. is trading at a discount to the group.
The Staffing Firms industry is part of the Business Services sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
