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What's in the Cards for RCM Technologies (RCMT) in Q3 Earnings?

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RCM Technologies, Inc.’s (RCMT - Free Report) third-quarter 2021 revenues are expected to have been aided by strength in the company’s sales pipeline, and the contributions from investments in technology, automation and digitization.

Let’s check out the expectations in detail.

Q3 Expectations

The Zacks Consensus Estimate for revenues is pegged at $42.22 million, indicating growth of 33.8% year over year. The top line is likely to benefit from consistent growth in the company’s sales pipeline, contributions from investments in technology, automation and digitization, along with continued operational performance. Contribution from reduction in expenses generated by automation and higher incentive fees due to improvement in customer performance metrics are likely to act as other tailwinds.

The Zacks Consensus Estimate for earnings is pegged at a loss of 2 cents per share, flat with the year-ago reported figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for RCM Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

RCM Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2021 earnings:

Opendoor Technologies (OPEN - Free Report) has an Earnings ESP of +38.89% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

SoFi Technologies (SOFI - Free Report) has an Earnings ESP of +64.71% and a Zacks Rank #3.

SailPoint Technologies (SAIL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.