RingCentral stock after recent performance

RingCentral (RNG) has been on a weaker run recently, with the share price down about 8% over the past month and 11% over the past 3 months, sharpening investor focus on fundamentals.

At the latest share price of $26.82, RingCentral’s short term moves have been choppy, with a 1 day share price return of 1.14% decline and a 7 day share price return of 1.98% gain. This is set against a weaker backdrop where the 1 year total shareholder return of 22.60% decline and 5 year total shareholder return of 92.81% decline suggest momentum has been fading rather than building.

If RingCentral’s recent swings have you reassessing your watchlist, it could be a useful moment to broaden your search with high growth tech and AI stocks.

With RingCentral trading at $26.82, some metrics point to a discount relative to certain estimates, but past returns show heavy drawdowns. Is the market overlooking potential recovery, or already pricing in all the future growth?

Most Popular Narrative: 19.3% Undervalued

RingCentral’s most followed valuation narrative points to a fair value of $33.24 against the current $26.82 share price, setting up a clear gap for investors to assess.

The expansion of AI-powered products such as RingCX, RingSense, and AIR is driving new customer adoption and early double-digit growth, positioning RingCentral to capture additional market share as enterprises accelerate their digital transformation initiatives and seek more automated, data-driven communication solutions, likely supporting future revenue growth and margin expansion.

Curious what kind of revenue path, margin lift, and future earnings multiple sit behind that valuation gap? The full narrative spells out the assumptions in detail, including how profit expectations build over time and what kind of pricing power would need to hold up for that fair value to make sense.

Result: Fair Value of $33.24 (UNDERVALUED)

However, this hinges on bundled suites like Microsoft Teams not squeezing RingCentral’s standalone offer and on key partners such as AT&T and Vodafone remaining fully aligned.

Build Your Own RingCentral Narrative

If this storyline does not quite match your view, you can test the same data for yourself and build a custom thesis in just a few minutes, starting with Do it your way.

A great starting point for your RingCentral research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If RingCentral is already on your radar, do not stop there. Widen your opportunity set with a few focused screens that can surface very different types of companies.

• Spot potential value by reviewing these 862 undervalued stocks based on cash flows that currently trade below what their cash flows may imply.
• Position yourself early in powerful tech trends by checking out these 24 AI penny stocks shaping the future of applied artificial intelligence.
• Add some higher risk, higher potential names to your research list by scanning these 3526 penny stocks with strong financials that still clear basic financial quality checks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.