Zacks Investment Ideas feature highlights: Maximus and RingCentral

For Immediate ReleaseChicago, IL – April 9, 2025 – Today, Zacks Investment Ideas feature highlights Maximus MMS and RingCentral RNG.Buy the Dip in These Highly-Ranked Stocks at 52-Week LowsAmong the Zacks Rank #1 (Strong Buy) list, government program operator Maximus and internet software services provider RingCentral are two stocks that have become increasingly intriguing near their 52-week lows.Both are making an evident case of being in oversold territory as ongoing tariff concerns have ripped markets.Maximus Buy the Dip OverviewTrading 28% from its 52-week high of $93 a share, Maximus stock recently hit its one-year low of $63. Leading to the steep selloff is the Trump administration’s plans to cut various government programs although Maximus’s diversification should more than keep the company afloat. To that point, Maximus operates government health and human services programs in a variety of countries outside the U.S. including Australia, Canada, and the United Kingdom among others.After posting an industry-leading 12% EPS growth in the last five years compared to the S&P 500's 8%, Maximus’s bottom line is expected to slightly contract but earnings estimates for fiscal 2025 and FY26 are up over 2% and 5% in the last 60 days respectively.RingCentral’s "Buy the Dip" OverviewCatering to various communication and collaboration needs for businesses, RingCentral’s stock has been swooped up in the sharp decline among the tech sector and is hovering near a 52-week low of $20 a share compared to a high of $42.That said, the drop has created an opportunity that is too hard to ignore as RingCentral has generated records in free cash flow which is crucial to navigating a potential economic downturn and supercharging its AI initiatives. Stating its vision is to power every business with an AI-first platform, RingCentral has introduced an AI Receptionist or AIR, which is incorporated to act like a digital employee that will enable its customers to do more with less.RingCentral’s native contact center AI product, RingCX, has also been a strong catalyst to the company’s expansion by enhancing customer satisfaction and streamlining customer support operations. Notably, RingCentral’s total sales are expected to increase 5% this year and are projected to expand another 6% in FY26 to $2.68 billion. More impressive, FY25 & FY26 EPS is forecasted to spike over 12%.Attractive ValuationsFollowing their extended pullbacks, Maximus stock is trading at 11X forward earnings with RingCentral at 5.3X. Trading at a significant discount to the benchmark S&P 500’s 19.2X forward earnings multiple, it’s also noteworthy that MMS and RNG trade well under the optimum level of less than 2X sales.Bottom LineAlthough tariff concerns have rippled markets, Maximus and RingCentral stock could end up being two of the best buy-the-dip prospects. At their current levels, they appear to be in oversold territory with now looking like an ideal time to invest and start building positions for what should be a sharp rebound for MMS and RNG shares at some point.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. 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Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Maximus, Inc. (MMS): Free Stock Analysis Report Ringcentral, Inc. (RNG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks