Credit: Shutterstock photoAs the global leader in cloud-based communication and collaboration solutions for businesses and other enterprises, RingCentral ( RNG ) has no shortage of rivals, including Vonage ( VG ), Cisco Systems ( CSCO ), Microsoft ( MSFT ) and IBD 50 memberAtlassian ( TEAM ).
[ibd-display-video id=2385970 width=50 float=left autostart=true] But it also has a new partner: Amazon.com (AMZN). In November, the 2013 IPO announced it had collaborated with Amazon Web Services to develop RingCentral Meetings for Alexa for Business .
Using Alexa, Amazon's voice-controlled digital assistant technology, the new RingCentral Meetings offerings let users join meetings, send text messages, listen to voice mails and make calls using voice commands.
Last summer, RingCentral was named the No. 1 cloud communications solution provider by Synergy Research.
133% Earnings Growth
RingCentral has generated average EPS gains of 133% over the last three quarters, and analysts expect the company to deliver a 100% increase when it reports Q4 numbers in mid-February.
The company would have made the latest list of stocks expecting 50%-plus earnings growth in Q4 , but its 94 Composite Rating was just below the 95 minimum benchmark.
Sales growth has also been impressive, with RingCentral increasing revenue at an annual pace of 31% over the last three years.
On the downside, the company has a lackluster return on equity of 5.4% and a lowly pretax profit margin of 1.8%.
Still, institutional investors continue to show interest in the stock, as indicated by a 1.4 up/down volume ratio, B Accumulation/Distribution Rating and six quarters of rising fund ownership.
New Year, New Breakout
Since breaking out of a long and deep cup with handle last February, RingCentral has nearly doubled in price while consistently finding support along its 10-week line.
On Thursday, the stock cleared a 50.05 buy point in a flat base , rising nearly 5% in volume 39% above average. The stock continued to rise Friday and is now trading at the upper end of the buy zone with the relative strength line just shy of new high ground.
Amazon has moved higher each trading day in 2018 and is now out of beyond buy range from 1,213.51 buy point it initially cleared on Jan. 4.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
