RCM Technologies, Inc. (RCMT) shares ended the last trading session 14% higher at $7.35. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 31.9% gain over the past four weeks.
Increased optimism over a booming staffing industry driven by a surge in manufacturing and service activities, and a recovering economy primarily drove the stock that extended its rally for the third straight day.
This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $42.22 million, up 33.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For RCM Technologies, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RCMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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