RCM Tech $RCMT stock broke below its 50-day moving average last week and is approaching its 50% Fibonacci Retracement level.
Quite a few traders are stalking RCMT stock as it pulls back for a possible long entry because the company has crushed it for the last five quarters on sales growth.
B. Riley Securities analyst Alex Rygiel was so impressed by the surprising revenue growth in this market that he kept his Neutral rating on the stock but raised the price target from $16.50 to $23. How’s that for hedging your analyst performance record!
RCM Technologies, Inc. is a national provider of Business, Technology and resource solutions in information technology and professional engineering to customers in corporate and government sectors.
The stock trades at an excellent P/S of 0.85, with a market cap of $205.2 million, doing $241.3 million in sales last year. This valuation metrics has put the stock on many traders watchlist.
Zack’s recently upgraded RCMT stock to a Buy rating. Zack’s Research explains the Buy rating:
This company is expected to earn $1.95 per share for the fiscal year ending December 2022, which represents a year-over-year change of 219.7%. Analysts have been steadily raising their estimates for RCM Technologies, Inc. Over the past three months, the Zacks Consensus Estimate for the company has increased 242.1%.Zacks.com
Analysts expect RCMT’s revenue to increase 61.7% year-over-year to $79.13 million for the second quarter ending June 2022. The consensus EPS estimate of $0.53 represents a 348% improvement year-over-year for the second quarter ending June 2022.
The 50-day MA (green line) broke last week and the next major MA support is the 100-day at $14.69 (orange line). That would also correspond with a 61.8% Fibonacci retracement.