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Is RCM Technologies (RCMT) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is RCM Technologies (RCMT - Free Report) . RCMT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.68, while its industry has an average P/E of 17.21. RCMT's Forward P/E has been as high as 15.75 and as low as 6.30, with a median of 9.33, all within the past year.

Finally, investors should note that RCMT has a P/CF ratio of 9.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.38. Over the past 52 weeks, RCMT's P/CF has been as high as 14.40 and as low as 6.14, with a median of 9.23.

These are just a handful of the figures considered in RCM Technologies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RCMT is an impressive value stock right now.


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