Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
RingCentral (RNG)
RingCentral 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.
RNG is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 8.9X for the current fiscal year compared to the Internet - Software and Services industry's P/E of 25.1X. Additionally, RNG has a PEG Ratio of 0.4 and a Price/Cash Flow ratio of 11.5X. Value investors should also note RNG's Price/Sales ratio of 1.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, nine analysts revised their earnings estimate higher in the last 60 days for RNG, while the Zacks Consensus Estimate has increased $0.08 to $3.49 per share. RNG also holds an average earnings surprise of 6.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding RNG to their portfolios.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ringcentral, Inc. (RNG) : Free Stock Analysis Report