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RCM Technologies, Inc. (RCMT) Exceeds Market Returns: Some Facts to Consider

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RCM Technologies, Inc. (RCMT - Free Report) closed the most recent trading day at $19.98, moving +1.73% from the previous trading session. This change outpaced the S&P 500's 1.7% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 2.51%.

The company's shares have seen an increase of 1.29% over the last month, not keeping up with the Business Services sector's gain of 6.45% and outstripping the S&P 500's gain of 1.27%.

Analysts and investors alike will be keeping a close eye on the performance of RCM Technologies, Inc. in its upcoming earnings disclosure. In that report, analysts expect RCM Technologies, Inc. to post earnings of $0.44 per share. This would mark a year-over-year decline of 4.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.59 million, up 4.38% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.33 per share and a revenue of $277.23 million, representing changes of +10.43% and +5.32%, respectively, from the prior year.

Any recent changes to analyst estimates for RCM Technologies, Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RCM Technologies, Inc. presently features a Zacks Rank of #2 (Buy).

Looking at valuation, RCM Technologies, Inc. is presently trading at a Forward P/E ratio of 8.43. This denotes a discount relative to the industry's average Forward P/E of 15.12.

The Staffing Firms industry is part of the Business Services sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 27% 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.

To follow RCMT in the coming trading sessions, be sure to utilize Zacks.com.


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