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Here's Why RCM Technologies, Inc. (RCMT) Fell More Than Broader Market

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In the latest trading session, RCM Technologies, Inc. (RCMT - Free Report) closed at $22.14, marking a -3.86% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.

The stock of company has risen by 1.81% in the past month, leading the Business Services sector's loss of 4.75% and the S&P 500's gain of 0.45%.

Investors will be eagerly watching for the performance of RCM Technologies, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.6, up 7.14% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $78.15 million, indicating a 13% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.19 per share and a revenue of $313.89 million, indicating changes of +7.88% and +12.76%, 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. RCM Technologies, Inc. presently features a Zacks Rank of #3 (Hold).

Investors should also note RCM Technologies, Inc.'s current valuation metrics, including its Forward P/E ratio of 10.52. This valuation marks a discount compared to its industry average Forward P/E of 15.28.

The Staffing Firms industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 209, placing it within the bottom 16% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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