JUMP REPORT
Avg Daily Volume: 963,728 Market Cap: 17.86B
Sector: Technology Short Interest: 12.01
EARNINGS EXPECTATIONS:
THIS QTR: EPS: .21/share REV: 239.4/M
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LAST QTR: EPS: .19/share ACTUAL: .22/share (BEAT)
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NEXT QTR: EPS: .18/share REV: 249.2/M
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FULL YR: EPS: .81/share REV: 889.5/M
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*These are the base metrics we will be watching against the actual release numbers
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BEAT/MISS RECORD: 85% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) 8.46, 16.3, -5.40
EXPECTED JUMP MOVE: 10-15 %
Links To Latest News and Headlines
RingCentral, Inc. (NYSE:RNG), a leading provider of global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced that it was named a Customers’ Choice in the April 2021 Gartner Peer Insights ‘Voice of the Customer’: Unified Communications as a Service (UCaaS), Worldwide report for both the large and mid-size enterprise. RingCentral® was the only vendor to receive the highest overall rating of 4.6 out of 5 stars, as of 28th February 2021 based on 126 reviews.
The communication software-as-a-service sector is a more than $60-billion market that has several bullish trends on which investors can capitalize in the long-term, according to a BofA Securities analyst. On Tuesday, BofA Securities performed a deep dive into communication software companies and reinstated coverage of several leading stocks. The BofA Analyst: Analyst Daniel Bartus reinstated coverage of the following stocks: Zoom Video Communications Inc (NASDAQ: ZM): Buy rating, $480 price target. RingCentral Inc (NYSE: RNG): Buy rating, $450 price target. Twilio Inc (NYSE: TWLO): Buy rating, $480 price target. 8×8, Inc. (NYSE: EGHT): Neutral rating, $39 price target. Five9 Inc (NASDAQ: FIVN): Underperform rating, $190 target. Check out Benzinga’s coverage of the Direxion Work From Home ETF, which counts Zoom, RingCentral and 8×8 among its holdings. The Takeaways: The migration to the cloud is starting to accelerate, Bartus said. Artificial intelligence and customer experience are becoming more strategic for today’s businesses, the analyst said. And the COVID-19 pandemic pulled forward the digital transformation of the global economy, a significant tailwind for these communication software stocks, he said. Unified communication as a service — UCaaS — leader RingCentral is Bartus’ top stock pick in the group, the analyst said. On top of RingCentral’s track record of 30%+ revenue growth 2017-2020, we think the market inflection and partnership contributions are likely to drive upside to management’s 25% growth target in 2021.” Despite extremely difficult comps in 2021, he said Zoom Video is here to stay and has plenty of long-term growth ahead. “In our view, the current negative sentiment around reopening churn opens a particularly attractive buying opportunity and the valuation is more supportive with the stock trading at 20x our CY22 EV/Sales vs peers at 18-19x,” Bartus said. Bartus is also bullish on Twilio and said the stock’s premium valuation is justified given its potential for sustainable revenue growth of above 30%. “We believe Twilio’s valuation is justified by its higher growth profile, the path for long-term margin expansion, and Twilio being a category-winner.” Related Link: If You Invested ,000 In Zoom Video Stock One Year Ago, Here’s How Much You’d Have Now Benzinga’s Take: As with many high-growth tech stocks in the market these days, additional upside for these communication software stocks will hinge on the answer to two questions. How much future growth is already priced into the stocks at their current stretched valuations? And will these companies be able to live up to a very high bar of long-term growth expectations in the next several years? Photo courtesy of Zoom. Latest Ratings for ZM DateFirmActionFromTo Mar 2021Daiwa CapitalInitiates Coverage OnSell Mar 2021Deutsche BankInitiates Coverage OnHold Mar 2021Piper SandlerUpgradesNeutralOverweight View More Analyst Ratings for ZM View the Latest Analyst Ratings See more from BenzingaClick here for options trades from BenzingaBofA Upgrades Steel Dynamics, Nucor Amid Record Steel PricesThis Day In Market History: The Social Security Amendments Of 1983© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
RingCentral (RNG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Bank of America’s Daniel Bartus expects communications software group to continue to flourish in a post-pandemic world.
It’s not fair to call RingCentral (NYSE: RNG) a pandemic play, and that makes the recent market rotation out of the next-gen telco platform operator all the more frustrating. RingCentral stock has surrendered nearly 30% of its value since hitting an all-time high two months ago, and at least one Wall Street pro likes the opportunity to buy. BofA analyst Daniel Bartus is reinstating coverage of RingCentral with a buy rating.
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