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RCM Technologies, Inc. (RCMT) Exceeds Market Returns: Some Facts to Consider

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RCM Technologies, Inc. (RCMT - Free Report) closed the most recent trading day at $27.01, moving +1.81% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.44%.

Coming into today, shares of the company had lost 2.53% in the past month. In that same time, the Business Services sector lost 0.7%, while the S&P 500 gained 2.72%.

Market participants will be closely following the financial results of RCM Technologies, Inc. in its upcoming release. In that report, analysts expect RCM Technologies, Inc. to post earnings of $0.45 per share. This would mark year-over-year growth of 2.27%. Simultaneously, our latest consensus estimate expects the revenue to be $68.26 million, showing a 13.07% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.38 per share and revenue of $313.91 million, which would represent changes of +17.24% and +12.76%, respectively, from the prior year.

Any recent changes to analyst estimates for RCM Technologies, Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 has remained steady. At present, RCM Technologies, Inc. boasts a Zacks Rank of #3 (Hold).

Looking at valuation, RCM Technologies, Inc. is presently trading at a Forward P/E ratio of 11.15. This denotes a discount relative to the industry average Forward P/E of 16.45.

The Staffing Firms industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 206, finds itself in the bottom 17% echelons 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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