4 Undervalued Software Stocks for Friday, August 21
Discover the top 4 undervalued Software stocks for Friday, August 21 based on AAII’s Stock Grades.Michael Rose
A+ Stock Grade Summary:
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COMPANY SUMMARY
RingCentral, Inc., an agentic voice AI–powered cloud business communication services provider, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging. The company’s products include RingEX, a AI-powered unified communications as a service platform for collaboration across voice, messaging, and video; RingCentral Contact Center, a contact center solution that delivers AI-powered omni-channel and workforce engagement solutions; RingCentral Customer Engagement Bundle, a comprehensive solution that includes phone, messaging, and SMS for businesses; and RingCX, a contact center as a service solution for AI-powered customer engagement with CRM integrations. It also offers artificial intelligence (AI) solutions, such as AI Receptionist, a voice AI agent that automates and handles inbound communication; AI Virtual Assistant, which provides real time call and meeting summaries, capturing key points, open questions and action items; AI-based Quality Management, an automated conversation evaluation platform to identify compliance risks, coaching opportunities, and performance insights; AI Agent Assist, a real-time AI guidance for agents; AI Supervisor Assist, a real-time AI insights and recommendations for supervisors; and RingCentral Events, a virtual and hybrid events platform for multi-session conferences, branded experiences, registration, and attendee networking with AI-powered engagement tools. It serves a range of industries, including healthcare, financial and professional services, retail, state and local government, education, legal services, real estate, technology, insurance, construction and hospitality, and others. The company sells its products to enterprise customers, and small and medium-sized businesses through resellers and distributors, partners, and global service providers. RingCentral, Inc. was incorporated in 1999 and is headquartered in Belmont, California.
Commentary & Analysis
Which Is a Better Investment, CCC Intelligent Solutions Holdings Inc. or RingCentral, Inc. Stock?
Learn more about whether CCC Intelligent Solutions Holdings Inc. or RingCentral, Inc. is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Michael Rose
Three Software Stocks That May Be Worth Watching
This week, we use AAII’s A+ Investor Stock Grades to provide insight into three software stocks.
Rosalio Madrigal
Why RingCentral, Inc.’s (RNG) Stock Is Down 5.24%
As of Friday, August 14, RingCentral, Inc.’s RNG share price has dipped by 5.24%, which has investors questioning if this is right time to buy.Rosalio Madrigal
Is RingCentral, Inc. (RNG) Overvalued?
We dive into why RingCentral, Inc. (RNG) could be considered overvalued on 2026-07-29, based on AAII’s Value Score and Grade.Michael Rose
Financial Summary
| Share Statistics | RNG | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $5,595.7 | $1,092.1 | 69% |
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| Shares Out (Mil) | 86.6 | 78.5 | 59% |
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| Institutional Ownership | 89.9% | 80.9% | 57% |
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| Float (Mil) | 72.5 | 53.1 | 55% |
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| Beta | 1.14 | 1.01 | 68% |
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| Avg Daily Volume (000s) | 1,415 | 793 | 77% |
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| Price Change (52-week) |
127.9% | 57.8% | 93% |
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| Growth | RNG | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 16.3% | 14.8% | 75% |
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| Net Income (5yr) | 20.3% | 10.1% | 74% |
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| EPS (5yr) | 20.2% | 16.1% | 69 |
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| Dividends (5yr) | 0.0% | 0.0% | 58% |
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| Cash Flow (5yr) | (18.8%) | (15.4%) | 36% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 14 | 14 | 15 | |
| Current EPS | $1.278 | $5.071 | $5.499 | |
| Month Ago EPS | $1.259 | $4.953 | $5.438 | |
| # Rev Up | 1 | 1 | 0 | |
| # Rev Down | 2 | 0 | 3 | |
| Three Months Ago EPS | $1.249 | $4.937 | $5.382 | |
| Year/Year Chg | 184.0% | 956.5% | 1,184% | |
| Financials | RNG | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $2,584 | $345 | 64% |
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| Net Income (TTM) (Mil) | $110 | ($2) | 62% |
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| EPS (TTM) | $1.279 | ($0.100) | 64% |
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| Operating Cash Flow (TTM) (Mil) | $671 | $30 | 75% |
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| Net Cash Flow (TTM) (Mil) | ($57) | $1 | 18% |
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| Long-Term Debt (Q1) (Mil) | $1,098 | $34 | 67% |
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| Enterprise Value (Q1) (Mil) | $5,737 | $1,096 | 65% |
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| Valuation | RNG | Industry Median |
Percentile (All Stocks) |
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| P/B | na | 3.41 | na |
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| P/E | 53.6 | 39.1 | 85% |
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| Dividend Yield | 0.7% | 0.0% | 64% |
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| PEG (5yr hist) | 2.7 | 2.1 | 75% |
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| Ratios | RNG | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 71.9% | 69.8% | 82% |
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| Net Margin | 4.3% | 0.5% | 46% |
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| ROA | 7.4% | (1.2%) | 81% |
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| ROE | (20.1%) | 1.2% | 23% |
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| Liabilities to Assets | 129.7% | 47.5% | 97% |
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| F-Score | 8 | 5 | na |
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Passing Stock Screens
As of 8/21/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Lakonishok Screen
Factors: Value, Momentum
Identifying stocks trading at a discount to their industry norms but showing recent price strength and upward earnings revisions.
| Performance Since Inception: | 13.2% |
| +/- S&P 500: | +5.7 |
