Thinking Of Investing In RCM Technologies Inc. (NASDAQ: RCMT) Stock? Read This First

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RCM Technologies Inc. (NASDAQ:RCMT) shares, rose in value on Friday, September 24, with the stock price up by 4.76% to the previous day’s close as strong demand from buyers drove the stock to $7.70.

Actively observing the price movement in the last trading, the stock closed the session at $7.35, falling within a range of $7.30 and $7.75. The value of beta (5-year monthly) was 1.93 whereas the PE ratio was 320.83 over 12-month period. Referring to stock’s 52-week performance, its high was $12.49, and the low was $1.23. On the whole, RCMT has fluctuated by 57.46% over the past month.

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With the market capitalization of RCM Technologies Inc. currently standing at about $94.32 million, investors are eagerly awaiting this quarter’s results, scheduled for Apr 01, 2021. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0, which is expected to increase to $0.14 for fiscal year $0.32 and then to about $0.39 by fiscal year 2022. Data indicates that the EPS growth is expected to be 143.80% in 2022, while the next year’s EPS growth is forecast to be 21.90%.

Analysts have estimated the company’s revenue for the quarter at $41.11 million, with a low estimate of $40 million and a high estimate of $42.22 million. According to the average forecast, sales growth in current quarter could jump up 30.30%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2022, the company’s y-o-y revenues would reach $182.96 million, representing an increase of 21.60% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that RCMT’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

The stock’s technical analysis shows that the PEG ratio is about 21.39, with the price of RCMT currently trading nearly 25.57% and 51.62% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 67.60, while the 7-day volatility ratio is showing 11.08% which for the 30-day chart, stands at 9.06%. Furthermore, RCM Technologies Inc. (RCMT)’s beta value is 1.85, and its average true range (ATR) is 0.59.

A comparison of RCM Technologies Inc. (RCMT) with its peers suggests the former has fared considerably weaker in the market. RCMT showed an intraday change of 4.76% in last session, and over the past year, it grew by 453.96%%. In comparison, International Business Machines Corporation (IBM) has moved higher at 0.56% on the day and was up 16.43% over the past 12 months. On the other hand, the price of Cross Country Healthcare Inc. (CCRN) has risen 0.80% on the day. The stock, however, is off 270.07% from where it was a year ago. Additionally, there is a gain of 0.41% for Automatic Data Processing Inc. (ADP) in last trading while the stock has seen an overall depriciation of 54.60%% over the past year. The PE ratio stands at 320.83 for RCM Technologies Inc., compared to 23.75 for International Business Machines Corporation, and 23.10 for Cross Country Healthcare Inc. Other than that, the overall performance of the S&P 500 during the last trading session shows that it gained 0.15%. Meanwhile, the Dow Jones Industrial Improved by 0.10%.

Data on historical trading for RCM Technologies Inc. (NASDAQ:RCMT) indicates that the trading volumes over the past 10 days have averaged 0.48 million and over the past 3 months, they’ve averaged 241.27K. According to company’s latest data on outstanding shares, there are 11.14 million shares outstanding.

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Nearly 1.00% of RCM Technologies Inc.’s shares belong to company insiders and institutional investors own 22.30% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 93570.0 shares as on Jun 14, 2021, resulting in a short ratio of 1.22. According to the data, the short interest in RCM Technologies Inc. (RCMT) stood at 0.84% of shares outstanding as of Jun 14, 2021; the number of short shares registered in May 13, 2021 reached 0.22 million. The stock has risen by 271.98% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the RCMT stock heading into the next quarter.