RingCentral (RNG) Stock—Steady and Reliable Growth
All told, RingCentral looks like rare merchandise to us—a company with rapid, steady and reliable growth, as well as a gigantic opportunity in front of it
We recommended RingCentral (RNG) stock in the October 22, 2019 Cabot Stock of the Week when it was at 153. Today, it’s at 220—up 44%. If this is the kind of money you’d like to be making, subscribe to Cabot Stock of the Week for more of Timothy Lutts’s great stock picks.
What Tim said then:
RingCentral (RNG) Stock
Given the reality of today’s mobile, connected workforce, you’d think the communications systems found at most companies big and small would have evolved, too. But you’d be wrong! Many companies still have legacy, on-premise, voice-oriented systems for employees to talk to each other, customers or suppliers.
Therein lies the massive opportunity for RingCentral, which is a leader in a field clunkily known as Unified Communications as a Service (UCaaS). Basically, the firm offers a cloud-based business communications and collaboration platform that is location- and device-independent and includes everything a firm needs—voice, virtual meetings, digital faxes, team messaging (including file sharing and task management) and even contact center functions. The solution is customizable, too, and can be integrated into other cloud-based systems (Oracle, Okta, Zendesk, Box, Salesforce, etc.). The advantages are numerous, especially for big workforces that collaborate from all over the place at various times.
The firm’s Office offering is the core of its services, and the hurdle to sign up doesn’t seem big—from $20 to $50 per month per user depending on the services a firm needs. In fact, not only is the product better, but RingCentral ends up saving its clients a bunch of money over time, too.
Tim’s April 2020 Update
Originally recommended by Mike Cintolo in Cabot Growth Investor, hit a new high last Monday and has pulled back normally since—though it remains above all its moving averages. As a key provider of cloud-based communication services, growth prospects are excellent, particularly as the Work From Home (WFH) movement grows. If you don’t own RNG, you could nibble here.