- RingCentral (RNG) demonstrates strong technical momentum, recently hitting a 3-year high.
- Shares are up more than 140% over the past year.
- RNG maintains a 100% “Buy” technical opinion from Barchart.
- Despite high price momentum, consistent revenue, income, and cash flow growth support a solid outlook.
Today’s Featured Stock
Valued at $6.4 billion, RingCentral (RNG) is a leading provider of Unified Communications as a Service solutions including global enterprise cloud communications, collaboration, and customer engagement tools.
Its tools are designed to provide a single user identity across multiple locations and devices, including smartphones, tablets, PCs, and desk phones. This makes remote-working and collaboration easy. These tools include unified voice, video, on-line meetings, team messaging, digital customer engagement, and contact center solutions.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. RNG checks those boxes. The Trend Seeker issued a new “Buy” signal on July 27. The stock has gained 38.07% since that signal.
Barchart’s Technical Indicators for RingCentral
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
RingCentral hit a 3-year high of $81.90 on Sept. 23.
- RingCentral has a Weighted Alpha of 171.08.
- RNG has a 100% “Buy” opinion from Barchart.
- The stock has gained 141.12% over the past 52 weeks.
- RingCentral has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $73.97 with a 50-day moving average of $65.61.
- RNG had 6 highs and gained 6.87% in the last month.
- 60-month beta of 1.14.
- Relative Strength Index (RSI) is at 54.69.
- There’s a technical support level around $74.26.
Don’t Forget the Fundamentals
- $6.4 billion market capitalization.
- 33.4x trailing price-earnings ratio.
- 0.67% dividend yield.
- Revenue is projected to grow by 5.02% this year and another 4.53% next year.
- Earnings are estimated to increase by 15.46% this year and an additional 10.83% next year.
Analyst and Investor Sentiment on RingCentral
- The Wall Street analysts followed by Barchart give the stock 2 “Strong Buy,” 3 “Moderate Buy,” and 10 “Hold” ratings with price targets from $38 to $85.
- Value Line rates the stock “Highest” with price targets between $60 and $100.
- Morningstar thinks the stock is 44% overvalued.
- CFRA’s MarketScope rates the stock as “Hold.”
- 18,310 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- TipRanks’ analysts’ price target is $57.90.
- Short interest is 7.41% of the float with 4.49 days to cover the float.
The Bottom Line on RingCentral
Although the stock’s price momentum has made valuation a little high, analysts and Value Line still like this company. There have been solid increases in revenue, income, and operating cash flow for the last 5 years as well as projections for growth for at least the next two years. Sounds solid to me.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.