Core Viewpoint - Maximus and RingCentral are identified as attractive investment opportunities as they are trading near their 52-week lows, indicating potential for recovery in an oversold market [1][9]. Group 1: Maximus Overview - Maximus stock is currently trading 28% below its 52-week high of 63 due to government program cuts proposed by the Trump administration [2]. - Despite the selloff, Maximus's diversification across various countries, including Australia, Canada, and the UK, is expected to sustain the company [2]. - The company has demonstrated strong performance with a 12% EPS growth over the last five years, outpacing the S&P 500's 8% growth, although a slight contraction in earnings is anticipated [3]. Group 2: Maximus Financial Estimates - Current EPS estimates for Maximus are 1.37 for Q1 2025, 1.52 for Q2 2025, 6.08 for FY2025, and 6.02 for FY2026, with no changes in estimates over the past 30 days [4]. Group 3: RingCentral Overview - RingCentral's stock is near a 52-week low of 42, primarily affected by the tech sector's decline [4][5]. - The company has reported record free cash flow, which is crucial for navigating economic downturns and enhancing its AI initiatives [5]. - RingCentral aims to empower businesses with an AI-first platform, introducing innovations like the AI Receptionist to improve operational efficiency [5]. Group 4: RingCentral Financial Estimates - RingCentral's total sales are projected to increase by 5% this year and by another 6% in FY26, reaching $2.68 billion, with EPS expected to grow over 12% in FY25 and FY26 [6]. Group 5: Valuation Comparison - Maximus is trading at 11X forward earnings, while RingCentral is at 5.3X, both significantly below the S&P 500's forward earnings multiple of 19.2X, indicating attractive valuations [8]. Group 6: Investment Outlook - Both Maximus and RingCentral are viewed as strong buy-the-dip candidates, with current levels suggesting they are in oversold territory, presenting an ideal time for investment [9].
Buy the Dip in These Highly Ranked Stocks Near 52-Week Lows: MMS, RNG