A strong stock as of late has been RingCentral (RNG). Shares have been marching higher, with the stock up 37.4% over the past month. The stock hit a new 52-week high of $55.3 in the previous session. RingCentral has gained 85.9% since the start of the year compared to the 9.6% move for the Zacks Computer and Technology sector and the 9.4% return for the Zacks Internet - Software and Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 23, 2026, RingCentral reported EPS of $1.22 versus consensus estimate of $1.17 while it beat the consensus revenue estimate by 1.03%.

For the current fiscal year, RingCentral is expected to post earnings of $4.93 per share on $2.64 in revenues. This represents a 13.07% change in EPS on a 4.79% change in revenues. For the next fiscal year, the company is expected to earn $5.31 per share on $2.76 in revenues. This represents a year-over-year change of 7.73% and 4.76%, respectively.

Valuation Metrics

While RingCentral has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

RingCentral has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 10.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.9X. On a trailing cash flow basis, the stock currently trades at 8X versus its peer group's average of 11.7X. Additionally, the stock has a PEG ratio of 0.89. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making RingCentral an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, RingCentral currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if RingCentral passes the test. Thus, it seems as though RingCentral shares could still be poised for more gains ahead.

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Ringcentral, Inc. (RNG): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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