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RCM Technologies, Inc. (RCMT) Gains But Lags Market: What You Should Know

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RCM Technologies, Inc. (RCMT - Free Report) closed at $6.35 in the latest trading session, marking a +0.63% move from the prior day. This change lagged the S&P 500's 1.71% gain on the day.

Prior to today's trading, shares of the company had lost 16.65% over the past month. This has lagged the Business Services sector's loss of 5.79% and the S&P 500's loss of 2.25% in that time.

Investors will be hoping for strength from RCMT as it approaches 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. Our most recent consensus estimate is calling for quarterly revenue of $42.22 million, up 33.77% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for RCMT. These recent revisions tend to reflect the evolving nature of short-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RCMT is currently a Zacks Rank #1 (Strong Buy).

Investors should also note RCMT's current valuation metrics, including its Forward P/E ratio of 19.72. This represents a premium compared to its industry's average Forward P/E of 14.64.

The Staffing Firms industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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