Ringcentral had its price target raised today by analysts at Bank of America. Analysts at Bank of America raised the price target to $50 from $45 which represents 21.7% upside from the current price of $41.10. Bank of America has a Buy rating on the stock.
Ringcentral stock is a good seasonal play. Over the next 12 weeks, Ringcentral has on average historically risen by 16.6% based on the past 4 years of stock performance. Ringcentral has risen higher in 3 of those 4 years over the next 12 week period, corresponding to a historical probability of 75%.
I first wrote about taking a long entry in Ringcentral here. Is it still a good buy?
Ringcentral Stock Chart
Prices have been consolidating lately. There is a resistance zone just above the current price starting at $41.35. Right above this resistance zone may be a good entry point.
RNG has a Profit Margin of -6.77%. This is about inline with the industry average of -3.46%. RNG has a Piotroski-F score of 6. This indicates an average health and profitability for RNG. The profitability ratios for RNG are negative, so there is not much use analyzing them. RNG has a Return On Asserts of -10.89%. This is below the industry average of -1.22%.
RNG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative. Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for RNG. No positive earnings are expected for the next year. When comparing the current price to the book value of RNG, we can conclude it is expensive. It is trading at 20.49 times its book value. Compared to an average industry price book ratio of 4.66, RNG is valued more expensive than its industry peers. 92% of the companies listed in the same industry are valued cheaper.
Based on estimates for the next 2 years, RNG will show a strong growth in Earnings Per Share. The EPS will grow by 16.41% on average per year. When comparing the growth rate of the last 5 years to the growth rate of the upcoming 2 years, we see that the growth is accelerating. Looking at the last year, RNG shows a very strong growth in revenue. Revenue has grown by 27.75%. Measured over the last 5 years, revenue has been growing by 30.45% yearly. The earnings per share for RNG have decreased by -2.37% in the last year.
RNG has a Current Ratio of 2.01. This indicates that RNG is financially healthy and has no problem in meeting its short term obligations. When comparing the Current Ratio to an average industry Current Ratio of 1.72, RNG is better placed than the average industry peer to meet its short term obligations. RNG has a Quick Ratio of 2.01. This indicates that RNG is financially healthy and has no problem in meeting its short term obligations. RNG is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 1.67. An Altman-Z score of 17.02 indicates that RNG is not in any danger for bankruptcy at the moment. RNG has one of the better Altman-Z scores in its industry. It is much better than the industry average of 3.61. RNG has better score than 92% of its industry peers. The Debt to Equity ratio of RNG is inline with the industry averages. The Piotroski-F score of RNG is 6. This is a neutral score and indicates average health and profitability for RNG.
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