Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
RCM Technologies, Inc. (RCMT) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned +2.2%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Staffing Firms industry, which RCM Technologies falls in, has gained 2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
RCM Technologies is expected to post earnings of $0.44 per share for the current quarter, representing a year-over-year change of -4.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $2.33 for the current fiscal year indicates a year-over-year change of +10.4%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.80 indicates a change of +20.2% from what RCM Technologies is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for RCM Technologies.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For RCM Technologies, the consensus sales estimate for the current quarter of $60.59 million indicates a year-over-year change of +4.4%. For the current and next fiscal years, $277.23 million and $302.91 million estimates indicate +5.3% and +9.3% changes, respectively.
Last Reported Results and Surprise History
RCM Technologies reported revenues of $69.16 million in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $0.56 for the same period compares with $0.47 a year ago.
Compared to the Zacks Consensus Estimate of $69.9 million, the reported revenues represent a surprise of -1.05%. The EPS surprise was 0%.
Over the last four quarters, RCM Technologies surpassed consensus EPS estimates three times. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
RCM Technologies is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about RCM Technologies. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Zacks Investment Research
For Immediate Release
Chicago, IL – September 12, 2024 – Stocks in this week’s article are Atour Lifestyle Holdings Ltd. ATAT, Limbach Holdings, Inc. LMB, Willdan Group, Inc. WLDN and RCM Technologies, Inc. RCMT.
Forget the Fed: Bet on These Stocks with Rising Cash Flows
Investors are keeping a close watch on the Fed in recent times, as it gears up for the rate cut announcement. Eyes and ears are also tuned into indications of the Fed’s future course of action. However, instead of brooding too much on these, investors can benefit from stocks that are cash cows and offer higher returns.
Cash is the lifeblood of any business. It offers strength, vitality and flexibility to make investment decisions, and the fuel to run its growth engine. Moreover, cash shields a company from market turmoil and indicates that profits are being channeled in the right direction.
In this regard, stocks like Atour Lifestyle Holdings Ltd., Limbach Holdings, Inc., Willdan Group, Inc. and RCM Technologies, Inc. are worth buying.
One must go beyond profit numbers and look at a company’s efficiency in generating cash flows to invest in the right stocks. This is because even a profit-making company can have a dearth of cash flow and fail to meet its obligations. However, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This holds more relevance in the current context amid uncertainties in the global economy, market disruptions and dislocations.
To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
Here are four out of 13 stocks that qualified the screening:
Atour is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop a scenario-based retail business.
Atour has an impressive long-term expected growth rate of 33.7%. ATAT has a VGM Score of A.
Limbach Holdings provides building systems. The company engineers, constructs and services mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems.
The Zacks Consensus Estimate for Limbach Holdings’s 2024 earnings has moved 2.5% north in the past month to $2.43 per share. LMB sports a VGM Score of B.
Willdan Group is a provider of professional technical and consulting services to utilities, private industry and public agencies at all levels of government. WLDN enables its clients to realize cost and energy savings by providing a wide range of specialized services.
The Zacks Consensus Estimate for its current-year earnings has improved 12.3% over the past two months to $2.10. WLDN has a VGM Score of A.
RCM Technologies, based in Pennsauken, NJ, is a national provider of business, technology and resource solutions in information technology and professional engineering to customers in corporate and government sectors.
The Zacks Consensus Estimate for RCM Technologies’ 2024 earnings has been revised 2.2% upward to $2.33 in the past month. RCMT has a VGM Score of A.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2334553/forget-the-fed-bet-on-these-4-stocks-with-increasing-cash-flows
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Investment Research
Mastercard Incorporated MA recently expanded its partnership with Enfuce, an issuer processing powerhouse, with the launch of E2 cards in Germany, France and the UK. This E2 card is expected to impart benefits to both card issuers and customers by combining the benefits of debit and credit cards into a single card.
With this partnership, MA will be aiding Enfuce to roll out E2 cards across Europe after its success in the Nordics. This card provides cardholders the flexibility to switch from one card to another and enables them to be in control of their payments. The ability to shift from debit to credit card while making a transaction will save customers overdraft fees. Moreover, with added flexibility and convenience, Mastercard will see an increased transaction volume across both its credit and debit networks. This, in turn, should boost its top line and fulfill the demand for flexible payment options.
The application of credit and debit cards is linked with customers' accounts, ensuring the funds are used from the correct accounts. When transacting digitally, customers will have custom designs for each of the cards to avoid confusion. This partnership also supports MA’s sustainability goals by reducing the number of cards and plastic consumption.
Mastercard has been at the forefront of introducing innovative solutions for its customers in the fintech space. Mastercard seems to intensify its focus on growing through partnerships to unveil new card offerings. Its payment network net revenues improved 7% year over year in the second quarter.
Shares of Mastercard have gained 17.1% in the past year compared with the industry’s 16% growth.
MA’s Zacks Rank & Key Picks
MA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Business Services space are RCM Technologies, Inc. RCMT, Trane Technologies plc TT, and OppFi Inc. OPFI. RCM Technologies sports a Zacks Rank #1 (Strong Buy), while Trane Technologies and OppFi carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of RCM Technologies outpaced estimates in three of the last four quarters and matched the mark once, the average surprise being 17.49%. The Zacks Consensus Estimate for RCMT’s 2024 earnings indicates an improvement of 10.4% from the year-ago reported figure. The consensus mark for revenues implies growth of 5.3% from the year-ago reported number. The consensus mark for RCMT’s earnings has moved 2.2% north in the past 30 days.
The bottom line of Trane Technologies outpaced estimates in each of the last four quarters, the average surprise being 8.05%. The Zacks Consensus Estimate for TT’s 2024 earnings indicates an improvement of 19.7% from the year-ago reported figure. The consensus mark for revenues implies growth of 10.6% from the year-ago reported number. The consensus mark for TT’s earnings has moved 3.1% north in the past 30 days.
The bottom line of OppFi outpaced estimates in each of the last four quarters, the average surprise being 128.4%.The Zacks Consensus Estimate for OPFI’s 2024 earnings indicates an improvement of 45.1% from the year-ago reported figure. The consensus mark for revenues implies growth of 1.2% from the year-ago reported number. The consensus mark for OPFI’s earnings has moved 23.3% north in the past 60 days.
Zacks Investment Research
Shares of Global Payments Inc. GPN have gained 14.6% in the past three months, outperforming the industry’s 5.8% growth. The Business Services sector and the S&P 500 Composite index have increased 3.1% and 0.3%, respectively, in the same time frame.
Improving transaction volumes and growth in subscription and software revenues are benefiting this leading payment technology and software solutions provider. GPN shares are also trading well above the 50-day moving average, indicating a bullish trend. Global Payments carries a Zacks Rank #3 (Hold) at present.
GPN Stock Outperforms Industry, Sector & S&P 500
Is this the right time to buy GPN shares for potential upside? Let's go through the stock’s growth drivers.
GPN’s Growth Drivers
The Merchant Solutions unit will likely benefit from rising demand in embedded payments and commerce enablement solutions. Additionally, growth in volume, U.S. merchant partners, and point-of-sale business will also buoy its results.
GPN’s next-generation point-of-sale solutions are expected to launch in major international markets over the next 12 to 15 months, including Ireland, Poland, Australia etc. This will boost point-of-sale revenue contribution in the coming months. We expect revenues from the Merchant Solutions unit to increase more than 7% year over year this year. Adjusted operating margins of this business are expected to improve in the second half of 2024, thanks to the ramping up of EVO synergy realization.
Meanwhile, the Issuer Solutions segment is expected to gain from higher transactions and core issuer growth. Successfully cross-selling its value-added services like virtual card solutions and fraud prevention will further benefit the top line in the future. Renewal of existing partnerships, forging new ones and expanding its offerings to mid-market and smaller banks, as well as new geographies, bode well. Our model estimate indicates Issuer Solutions revenues to increase 6.4% year over year. Issuer Solutions’ operating margins are also expected to improve owing to better efficiency.
Looking at its geographical breakdown, it generated only 4.3% year-over-year growth in the Americas last year and 5.4% in the Asia Pacific region. Europe business, on the other hand, witnessed a 28.6% increase and is expected to continue the momentum. Even in the second quarter of 2024, the business has mid-single-digit growth. We expect Europe business to increase 11.6% year over year in 2024. The Americas business will continue to bring stability and innovation to its growth path.
The large numbers of unbanked individuals and small businesses across the Asia Pacific region present a significant opportunity for GPN to expand its network. Effectively tapping into this market could serve as a sustainable growth catalyst for the company.
GPN’s Favorable Valuation
Despite the recent growth in stock price, GPN is trading at a discount compared to the industry average. The stock is currently trading at 8.62X forward 12-month price to earnings, which compares to 22.78X for the industry, indicating undervaluation. Even better, it is trading 73% below its five-year high of 31.86. The company has a Value Score of B. Hence, it remains an attractive option to retain in an investment portfolio.
What’s Weighing on GPN Stock?
Rising expenses are putting pressure on the company’s margins. Despite cost-control measures, total adjusted operating expenses rose 4.8% year over year in the first half of 2024. However, the company expects to realize $135 million in run rate expense synergies from the EVO transaction within the next two years, providing some respite.
Competitive pressures from new digital entrants venturing into the bank issuer business may prove to be harmful to GPN in the future.
Estimate Revisions for GPN Stock
The Zacks Consensus Estimate for GPN’s 2024 earnings per share (EPS) is pegged at $11.63, which indicates an 11.6% increase from the 2023 figure. However, 2024 EPS estimates for GPN have been revised downward over the past 60 days, reflecting negative analyst sentiment.
GPN Stock Holds Promise
Strong demand for Global Payments solutions coupled with improving transaction volumes and expanding partnerships make it an attractive stock to retain for current investors. However, potential investors might want to keep an eye on its competitive position and rising expenses and wait for a better entry point.
Stocks to Consider
Some better-ranked stocks in the Business Services space are Trane Technologies plc TT, RCM Technologies, Inc. RCMT and OppFi Inc. OPFI. Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Trane Technologies outpaced estimates in each of the last four quarters, the average surprise being 8.1%. The Zacks Consensus Estimate for TT’s 2024 earnings indicates an improvement of 19.8% from the year-ago reported figure. The consensus mark for revenues implies growth of 10.6% from the year-ago reported number. The consensus mark for TT’s earnings has moved 3.1% north in the past 60 days.
The bottom line of RCM Technologies outpaced estimates in three of the last four quarters and matched the mark once, the average surprise being 17.5%. The Zacks Consensus Estimate for RCMT’s 2024 earnings indicates an improvement of 10.4% from the year-ago reported figure. The consensus mark for revenues implies growth of 5.3% from the year-ago reported number. The consensus mark for RCMT’s earnings has moved 2.2% north in the past 30 days.
The bottom line of OppFi outpaced estimates in each of the last four quarters, the average surprise being 128.4%. The Zacks Consensus Estimate for OPFI’s 2024 earnings indicates an improvement of 45.1% from the year-ago reported figure. The consensus mark for revenues implies growth of 1.2% from the year-ago reported number. The consensus mark for OPFI’s earnings has moved 23.3% north in the past 60 days.
Zacks Investment Research
Investors are keeping a close watch on the Fed in recent times, as it gears up for the rate cut announcement. Eyes and ears are also on indications of the Fed’s future course of action. However, instead of brooding too much on these, investors can benefit from stocks that are cash cows and offer higher returns.
Cash is the lifeblood of any business. It offers strength, vitality and flexibility to make investment decisions, and the fuel to run its growth engine. Moreover, cash shields a company from market turmoil and indicates that profits are being channeled in the right direction.
In this regard, stocks like Atour Lifestyle Holdings Limited ATAT, Limbach Holdings, Inc. LMB, Willdan Group, Inc. WLDN and RCM Technologies, Inc. RCMT are worth buying.
One must go beyond profit numbers and look at a company’s efficiency in generating cash flows to invest in the right stocks. This is because even a profit-making company can have a dearth of cash flow and fail to meet its obligations. However, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This holds more relevance in the current context amid uncertainties in the global economy, market disruptions and dislocations.
To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this, we chose:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are four out of 13 stocks that qualified the screening:
Atour is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop a scenario-based retail business.
Atour has an impressive long-term expected growth rate of 33.7%. ATAT has a VGM Score of A.
Limbach Holdings provides building systems. The company engineers, constructs and services mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems.
The Zacks Consensus Estimate for Limbach Holdings’s 2024 earnings has moved 2.5% north in the past monthk to $2.43 per share. LMB sports a VGM Score of B.
Willdan Group is a provider of professional technical and consulting services to utilities, private industry and public agencies at all levels of government. WLDN enables its clients to realize cost and energy savings by providing a wide range of specialized services.
The Zacks Consensus Estimate for its current-year earnings has improved 12.3% over the past two months to $2.10. WLDN has a VGM Score of A.
RCM Technologies, based in Pennsauken, NJ, is a national provider of business, technology and resource solutions in information technology and professional engineering to customers in corporate and government sectors.
The Zacks Consensus Estimate for RCM Technologies’ 2024 earnings has been revised 2.2% upward to $2.33 in the past month. RCMT has a VGM Score of A.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Investment Research
RCM Technologies, Inc. has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned -1.1% over the past month versus the Zacks S&P 500 composite's +2.2% change. The Zacks Staffing Firms industry, to which RCM Technologies belongs, has lost 4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
RCM Technologies is expected to post earnings of $0.44 per share for the current quarter, representing a year-over-year change of -4.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $2.33 for the current fiscal year indicates a year-over-year change of +10.4%. This estimate has changed +0.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.80 indicates a change of +20.2% from what RCM Technologies is expected to report a year ago. Over the past month, the estimate has changed +7.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for RCM Technologies.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of RCM Technologies, the consensus sales estimate of $60.59 million for the current quarter points to a year-over-year change of +4.4%. The $277.23 million and $302.91 million estimates for the current and next fiscal years indicate changes of +5.3% and +9.3%, respectively.
Last Reported Results and Surprise History
RCM Technologies reported revenues of $69.16 million in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $0.56 for the same period compares with $0.47 a year ago.
Compared to the Zacks Consensus Estimate of $69.9 million, the reported revenues represent a surprise of -1.05%. The EPS surprise was 0%.
Over the last four quarters, RCM Technologies surpassed consensus EPS estimates three times. The company could not beat consensus revenue estimates in any of the last four quarters.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
RCM Technologies is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about RCM Technologies. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Zacks Investment Research
RCM Technologies, Inc. could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for RCM Technologies is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For RCM Technologies, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Earnings Estimate Revisions for RCM Technologies
For the fiscal year ending December 2024, this company is expected to earn $2.33 per share, which is a change of 10.4% from the year-ago reported number.
Analysts have been steadily raising their estimates for RCM Technologies. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.5%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
The upgrade of RCM Technologies to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Investment Research
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.