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Regional Management (RM) Gains But Lags Market: What You Should Know

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Regional Management (RM - Free Report) closed at $19.51 in the latest trading session, marking a +1.4% move from the prior day. This change lagged the S&P 500's 1.9% gain on the day. At the same time, the Dow added 2.05%, and the tech-heavy Nasdaq gained 1.75%.

Investors will be hoping for strength from RM as it approaches its next earnings release. In that report, analysts expect RM to post earnings of $0.45 per share. This would mark a year-over-year decline of 35.71%. Our most recent consensus estimate is calling for quarterly revenue of $88.44 million, up 4.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $369.33 million, which would represent changes of -81.05% and +3.83%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.63% lower. RM is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, RM is currently trading at a Forward P/E ratio of 26.91. For comparison, its industry has an average Forward P/E of 13.84, which means RM is trading at a premium to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% 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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