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Nov 10, 2021
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RingCentral (RNG, $234.47) beats Q3 earnings expectations; boost guidance

RingCentral (RNG, $234.47) beats Q3 earnings expectations; boost guidance

Shares of RingCentral  jumped in after hours trading, following the company’s third quarter results that crushed analysts’ expectations.

 For the quarter ended Sept. 30, the enterprise cloud-based services company’s non-GAAP net income rose to 36 cents a share from 26 cents in the previous year, exceeding the 33 cents a share expected by analysts polled by FactSet.

Revenue climbed +36.5% from the year-ago quarter to $414.6 million, vs. $393.42 million anticipated by analysts polled by FactSet.

Looking ahead, RingCentral boosted its full year revenue projection to up to $1.581 billion in sales implying annual growth between 33% to 34%,   vs. prior forecast of 30% to 31%.

The company also raised full-year non-GAAP earnings per share estimates to $1.32 a share, from its prior projected range of $1.28 a share to $1.30 a share.

RingCentral announced new partnerships with software vendors in the healthcare sector including Ascom, ChronicCareIQ, and Ellkay.

The company has also collaborated with telecom provider MCM Telecom to offer hybrid work using a single app for video conferencing, mobile collaboration, and advanced business phone capabilities.

It has received a license to provide its cloud communications software and voice solutions in India.

Related Ticker: RNG

Momentum Indicator for RNG turns positive, indicating new upward trend

RNG saw its Momentum Indicator move above the 0 level on October 19, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned positive. In 61 of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at 75%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for RNG just turned positive on October 23, 2026. Looking at past instances where RNG's MACD turned positive, the stock continued to rise in 34 of 48 cases over the following month. The odds of a continued upward trend are 71%.

Following a +8.67% 3-day Advance, the price is estimated to grow further. Considering data from situations where RNG advanced for three days, in 205 of 279 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.

The Aroon Indicator entered an Uptrend today. In 119 of 163 cases where RNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.

Bearish Trend Analysis

The 10-day RSI Indicator for RNG moved out of overbought territory on September 25, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In 14 of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 55 of 65 cases where RNG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 85%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where RNG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.

RNG broke above its upper Bollinger Band on October 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron Seasonality Score of 14 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. RNG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 77 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-11.451) is normal, around the industry mean (-1.151). P/E Ratio (65.391) is within average values for comparable stocks, (15.524). Projected Growth (PEG Ratio) (0.377) is also within normal values, averaging (2.824). Dividend Yield (0.006) settles around the average of (0.075) among similar stocks. P/S Ratio (2.515) is also within normal values, averaging (71.128).

The Tickeron PE Growth Rating for this company is 93 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Shopify Inc (NASDAQ:SHOP), Salesforce (NYSE:CRM), Uber Technologies (NYSE:UBER), ServiceNow Inc. (NYSE:NOW), Adobe (NASDAQ:ADBE), Datadog (NASDAQ:DDOG), Intuit (NASDAQ:INTU), Atlassian Corp (NASDAQ:TEAM), Autodesk (NASDAQ:ADSK), Workday (NASDAQ:WDAY).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 11.02B. The market cap for tickers in the group ranges from 39 to 270.16B. SAP holds the highest valuation in this group at 270.16B. The lowest valued company is STIXF at 39.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was -1%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was -0%. AEYE experienced the highest price growth at 74%, while HODO experienced the biggest fall at -35%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was 3%. For the same stocks of the Industry, the average monthly volume growth was 4% and the average quarterly volume growth was -43%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 58
Price Growth Rating: 58
SMR Rating: 77
Profit Risk Rating: 93
Seasonality Score: 10 (-100 ... +100)
Related Portfolios: APPLICATION SOFTWARE
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General Information

a provider of software-as-a-service solutions for business communications

Industry PackagedSoftware

Industry
Packaged Software
Address
20 Davis Drive
Phone
+1 650 472-4100
Employees
7378
Web
https://www.ringcentral.com
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