RCM Technologies, Inc. (RCMT) Stock Sinks As Market Gains: What You Should Know

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RCM Technologies, Inc. (RCMT) closed at $6.38 in the latest trading session, marking a -0.31% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day.

Coming into today, shares of the company had gained 1.43% in the past month. In that same time, the Business Services sector lost 1.33%, while the S&P 500 gained 2.13%.

RCMT will be looking to display strength as it nears its next earnings release. In that report, analysts expect RCMT to post earnings of -$0.02 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $42.22 million, up 33.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.32 per share and revenue of $184.35 million. These totals would mark changes of +143.84% and +22.56%, respectively, from last year.

Any recent changes to analyst estimates for RCMT should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. RCMT is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, RCMT is holding a Forward P/E ratio of 20. For comparison, its industry has an average Forward P/E of 14.61, which means RCMT is trading at a premium to the group.

The Staffing Firms industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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