RingCentral (RNG) is scheduled to report first-quarter 2025 results on May 8.RNG expects total revenues between $607 million and $612 million for the first quarter, indicating year-over-year growth of 4-5% on a reported and constant-currency basis. Non-GAAP earnings are expected to be 93-97 cents per share for the first quarter of 2025.The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $610.74 million, suggesting 4.54% growth over the figure reported in the year-ago quarter.The consen ...

Rosenblatt analyst Catharine Trebnick maintained RingCentral RNG with a Buy and lowered the price forecast from $40 to $28 on Thursday.Trebnick reduced her price forecast due to lower revenue projections for fiscal 2025 and 2026, reflecting ongoing economic uncertainty and recent leadership transitions.The analyst remarked RingCentral as a stock for patient investors.Also Read: Zoom Shares Rise After Global Outage Reminds Investors of Platform’s Reach and Reliability StakesThe new products are gaining tract ...

Core Viewpoint - RingCentral (RNG) has experienced a significant decline in its stock price, dropping 27.6% year-to-date, while the broader Computer & Technology sector has decreased by 11.8% [1] Group 1: Performance Comparison - RNG has underperformed compared to peers like Microsoft, Zoom Communication, and Cisco Systems, which are advancing in AI-driven UCAAS communication technology [2] - Microsoft and Zoom Communication shares each fell by 9.3%, while Cisco Systems shares increased by 4.4%, highlighting RNG's relative underperformance [3] Group 2: Factors Influencing Performance - The decline in RNG's stock can be attributed to macroeconomic uncertainties, cautious enterprise spending, fierce competition, and currency fluctuations [3] - Despite these challenges, RNG is benefiting from strong AI-driven product adoption, increasing enterprise deals, and an expanding multi-product portfolio, particularly with RingCX and RingSense [3][4] Group 3: Product Innovations and Partnerships - RNG launched AI Receptionist in Q4 2024, an AI-powered phone agent that automates customer inquiries and call routing, providing a cost-effective solution for businesses [5] - The company is experiencing solid demand for its Unified Communications as a Service and contact center software-as-a-service solutions, bolstered by partnerships with AT&T, Cox Communications, BT, and Vodafone [6] Group 4: Future Guidance - For Q1 2025, RNG expects revenues between $607 million and $612 million, indicating a year-over-year growth of 4-5% [8] - The Zacks Consensus Estimate for Q1 2025 revenues is $610.74 million, suggesting a growth of 4.54% compared to the previous year [8] Group 5: Earnings Expectations - The consensus estimate for earnings is 96 cents per share, reflecting a year-over-year growth of 10.34% [9] Group 6: Investment Outlook - Despite macroeconomic uncertainties and competition, RNG's strong AI-driven product adoption and robust first-quarter guidance present a compelling investment opportunity [11] - RNG currently holds a Zacks Rank 1 (Strong Buy) and a Growth Score of A, indicating a favorable investment outlook [11]

Group 1: Core Insights - Investors in RingCentral, Inc. (RNG) should monitor stock movements due to high implied volatility in the options market, particularly the Apr 17, 2025 $17.50 Call option [1] - Implied volatility indicates market expectations for significant price movement, suggesting potential upcoming events that could lead to a rally or sell-off [2] - RingCentral holds a Zacks Rank 1 (Strong Buy) in the Internet - Software and Services industry, which is in the top 27% of the Zacks Industry Rank [3] Group 2: Analyst Perspectives - Over the last 60 days, one analyst has raised the earnings estimate for the current quarter, while five have lowered theirs, resulting in a consensus estimate decrease from $1.00 to $0.96 per share [3] - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Industry Overview - The Internet-Software & Services industry is experiencing a slow economy, with estimates fluctuating due to varying expectations on interest rate decisions [1] - Companies are in cost-saving mode, reducing operating expenses to maintain profitability despite revenue softness [1] - Capital investments are limited, with only a few companies making significant investments [1] Key Players - RingCentral (RNG) and Criteo (CRTO) are performing well by leveraging AI for revenue growth and developing client retention systems through subscriptions [2] - RingCentral's AI-powered product portfolio includes Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS), with average recurring revenue from new products exceeding $50 million for the first time [16][17] - Criteo's AI-driven commerce media platform connects advertisers with retailers, maintaining a strong client base of around 17,000 and a client retention rate of approximately 90% [21][23] Market Performance - The Zacks Internet – Software & Services Industry has shown improvement, returning 9.5% over the past year, outperforming the broader sector's return of 7.1% and the S&P 500's 8.8% [11] - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 22.3X, which is a 7.4% premium to the S&P 500 [13] Growth Prospects - The Zacks Industry Rank for the Internet-Software & Services industry is 45, placing it in the top 18% of over 250 classified industries, indicating strong growth prospects [6][8] - Despite recent rate cuts, the economic slowdown poses challenges for the industry, as customers tend to reduce software and service purchases during such times [7] Financial Estimates - The aggregate estimate revision trend shows caution, with estimates for fiscal years 2025 and 2026 experiencing fluctuations [9] - Analysts expect revenue growth of 5.7% for RingCentral in 2025 and 2.5% in 2026, while Criteo is projected to see sales increase by 4.8% this year [19][24]

Company Overview - Invest Heroes LLC is a CIS-based research firm established in 2018, providing equity and fixed income research services that have gained local recognition among professional investors and private clients [1] - The firm covers over 120 Russian, US, and Chinese stocks, as well as more than 200 Russian bonds, including corporate and state-owned enterprises [1] - The research services are offered as a paid service to institutional clients, asset managers, and approximately 3000 private clients [1] Team and Recognition - The team consists of 2 strategists and 9 analysts specializing in equity and fixed income markets, achieving global professional recognition [1] - Within the first three years, the firm gained entry into Refinitiv and Factset, participated in Refinitiv consensus, and became recognized as the best analysts in the Refinitiv rating for several Russian companies [1] - The firm is in the process of signing with S&P Market Intelligence, indicating further growth and recognition in the industry [1] Research Approach - The forecasts provided by the firm are often ahead of the market due to a detailed business model built for each company [1]

Group 1 - RingCentral (RNG) has experienced significant selling pressure, resulting in a 20% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The stock is currently in oversold territory, indicated by an RSI reading of 28.26, suggesting a potential trend reversal is imminent [5] - There has been a 23.5% increase in the consensus EPS estimate for RNG over the last 30 days, driven by a strong agreement among sell-side analysts, which typically correlates with price appreciation [6] Group 2 - RNG holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks in the market [2] Company Analysis - Ringcentral (RNG) is highlighted as a strong value stock, currently holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating its attractiveness to value investors [3] - The P/S ratio for RNG is 0.99, significantly lower than the industry average of 1.59, suggesting it may be undervalued [4] - RNG's P/CF ratio stands at 7.38, compared to the industry's average of 19.18, further indicating its potential undervaluation based on cash flow outlook [5] - The stock's P/CF has fluctuated between a high of 16.16 and a low of 7.32 over the past year, with a median of 11.47, reinforcing the notion of its current undervaluation [5] - Overall, the combination of RNG's strong earnings outlook and favorable valuation metrics positions it as an impressive value stock at this time [6]

Here are two stocks with buy rank and strong value characteristics for investors to consider today, February 28th:  Ringcentral (RNG) : This company which is a leading provider of contact center software-as-a-service (SaaS) solutions, along with global enterprise cloud communications, video meetings, collaboration, and customer engagement solutions that enable businesses to communicate, collaborate, and connect, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its cur ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...