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Why RCM Technologies, Inc. (RCMT) Outpaced the Stock Market Today

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RCM Technologies, Inc. (RCMT - Free Report) ended the recent trading session at $25.86, demonstrating a +2.74% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.78% for the day. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 0.61%.

The company's stock has climbed by 8.91% in the past month, exceeding the Business Services sector's gain of 2.26% and the S&P 500's gain of 5.88%.

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 $0.61 per share. This would mark year-over-year growth of 8.93%. Simultaneously, our latest consensus estimate expects the revenue to be $78.15 million, showing a 13% escalation compared to the year-ago quarter.

RCMT's full-year Zacks Consensus Estimates are calling for earnings of $2.2 per share and revenue of $313.89 million. These results would represent year-over-year changes of +8.37% and +12.76%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for RCM Technologies, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.04% decrease. As of now, RCM Technologies, Inc. holds a Zacks Rank of #4 (Sell).

Looking at its valuation, RCM Technologies, Inc. is holding a Forward P/E ratio of 11.44. This signifies a discount in comparison to the average Forward P/E of 16.29 for its industry.

The Staffing Firms industry is part of the Business Services sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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