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Fast-paced Momentum Stock WidePoint (WYY) Is Still Trading at a Bargain
ZACKS· 2025-05-16 13:51
Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Spotlight - WidePoint (WYY) - WidePoint (WYY) has shown significant recent price momentum, with a four-week price change of 84.7%, indicating growing investor interest [4] - Over the past 12 weeks, WYY's stock has gained 32.5%, and it has a beta of 1.81, suggesting it moves 81% more than the market in either direction [5] - WYY has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings and Valuation - WYY has received a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.36, suggesting it is undervalued, as investors pay only 36 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides WYY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]
RCM Technologies, Inc. Announces First Quarter Results
Globenewswire· 2025-05-07 20:05
Core Viewpoint - RCM Technologies, Inc. reported strong financial results for the thirteen weeks ended March 29, 2025, with significant increases in revenue, gross profit, and net income compared to the prior year, indicating robust operational performance and effective investment strategies [2][3]. Financial Performance - Revenue for the current quarter was $84.5 million, a 17.4% increase from $71.9 million in the comparable prior quarter [2]. - Gross profit reached $22.0 million, reflecting a 7.9% increase from $20.4 million in the prior quarter [2]. - GAAP net income was $4.2 million, or $0.54 per diluted share, compared to $4.0 million, or $0.48 per diluted share, in the prior quarter [2]. - Adjusted EBITDA (non-GAAP) was $7.8 million, up from $6.8 million in the comparable prior quarter [2]. Operational Highlights - The company generated $16.7 million in cash flow from operations and reduced net debt by $12.0 million while retiring shares [3]. - The internal business metrics are strengthening, and the company is positioned well due to a thoughtful investment strategy [3]. Segment Performance - Revenue breakdown for the current quarter included $43.3 million from Life Sciences, $32.1 million from Specialty Health Care, and $9.0 million from Data and Solutions [16]. - Gross profit margins varied by segment, with Life Sciences at 28.2%, Specialty Health Care at 19.2%, and Data Solutions at 39.7% [16]. Upcoming Events - A conference call is scheduled for May 8, 2025, to discuss the financial results in detail [4].