RingCentral (NYSE:RNG) Stock, Quote.Headers.trade-ideas

RingCentral

RingCentral is a unified communications as a service, or UCaaS, provider. Its software helps users communicate and collaborate via voice, video, and messaging across all device types and all from one platform. RingCentral helps customers modernize and move from legacy on-premises systems to modern, cloud-based systems. Beyond its core RingCentral MVP solution, RingCentral also offers a cloud-based contact center solution, a stand-alone video meetings solution, and webinars.

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Top 3 Tech Stocks You&#39;ll Regret Missing In September

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Markets experienced a sharp downturn, driven by heightened geopolitical tensions and economic uncertainties that negatively impacted investor risk sentiment, just a day after the Federal Open Market Committee (FOMC) meeting signaled a potential interest 

US Stocks Tumble On Economic, Geopolitical Concerns; Small Caps, Chipmakers Sink; Meta Rallies: What&#39;s Driving Markets Thursday?

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After Wednesday’s tech-led rebound amid the Federal Reserve’s rate decision, the stock market could be in for further gains. The major index futures point to a higher opening, although suggesting a slowdown in the upward momentum is in the cards.

Wall Street Looks To Ride On Earnings Cheer As Meta Q2 Impresses Investors: Analyst Says Economic Data, Stock Performances Suggest Republican Win In November

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The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">eGain Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EGAN#NASDAQ">EGAN</a>)</h3>
<ul>
<li>On Sept. 5, eGain reported fourth-quarter financial results and issued FY25 adjusted EPS guidance below estimates. &#8220;As businesses invest in Gen AI at scale, our AI Knowledge Hub helps deliver trusted answers for customer service, reducing cost and improving experience,&#8221; said Ashu Roy, eGain&#8217;s CEO. &#8220;As a result, new logo wins and RFPs for AI Knowledge were up 50 percent in fiscal 2024, and we are investing into this growing market opportunity for AI Knowledge.&#8221; The company's stock fell around 26% over the past five days and has a <a href="https://www.benzinga.com/quote/EGAN">52-week low of $4.81</a>.</li>
<li>RSI Value: 25.80</li>
<li>EGAN Price Action: Shares of eGain fell 4.1% to close at $4.90 on Wednesday.</li>
<li>Benzinga Pro's real-time newsfeed alerted to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091224&amp;t=be2bearmibe3na1">latest EGAN news.</a> </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="892" height="837" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063831/image-1-25.png" alt="" class="wp-image-544207" style="width:681px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063831/image-1-25.png 892w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063831/image-1-25-300x282.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063831/image-1-25-768x721.png 768w" sizes="(max-width: 892px) 100vw, 892px" /></a></figure>
<h3 class="wp-block-heading">Five9 Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVN#NASDAQ">FIVN</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<ul>
<li>On Aug. 8, Five9 reported second-quarter 2024 results. Revenue was $252.1 million, beating the consensus of $245.2 million. Mike Burkland, Chairman and CEO,said, "We are pleased to report strong second quarter results, achieving a key milestone with annual revenue run rate exceeding $1 billion, primarily driven by LTM enterprise subscription revenue growing 21% year-over-year." The company's stock fell around 16% over the past month. It<a href="https://www.benzinga.com/quote/FIVN"> has a 52-week low</a> of $26.60.</li>
<li>RSI Value: 26.38</li>
<li>FIVN Price Action: Shares of Five9 rose 1.3% to close at $27.33 on Wednesday.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091224&amp;t=be2bearmibe3na1">trend in FIVN stock. </a></li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="912" height="840" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063907/image-96.png" alt="" class="wp-image-544208" style="width:673px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063907/image-96.png 912w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063907/image-96-300x276.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063907/image-96-768x707.png 768w" sizes="(max-width: 912px) 100vw, 912px" /></a></figure>
<h3 class="wp-block-heading">RingCentral Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>)</h3>
<ul>
<li>On Sept. 3, RingCentral announced that CFO Sonalee Parekh will resign. Vlad Shmunis, Founder, Chairman and CEO of RingCentral, said, &#8220;On behalf of the Board and our entire team, I want to thank Sonalee for her many contributions to RingCentral, particularly improved profitability and free cash flow. She has been a trusted partner, and we wish her all the best in her future endeavors.&#8221; The company's shares fell around 12% over the past month and has a 52-week<a href="https://www.benzinga.com/quote/RNG"> low of $25.08</a>.</li>
<li>RSI Value: 29.93</li>
<li>RNG Price Action: Shares of RingCentral rose 0.9% to close at $28.00 on Wednesday.</li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091224&amp;t=be2bearmibe3na1">breakout in RNG shares</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="890" height="846" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063934/image-1-26.png" alt="" class="wp-image-544209" style="width:658px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063934/image-1-26.png 890w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063934/image-1-26-300x285.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/12063934/image-1-26-768x730.png 768w" sizes="(max-width: 890px) 100vw, 890px" /></a></figure>
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<ul>
<li><a href="https://www.benzinga.com/top-stories/24/09/40813043/jim-cramer-not-the-time-to-own-oil-when-asked-about-exxon-mobil-says-ibm-is-performing-well">Jim Cramer: &#8216;Not The Time To Own Oil,&#8217; When Asked About Exxon Mobil; Says IBM Is &#8216;Performing Well&#8217;</a></li>
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RingCentral shares are trading lower after the company announced that CFO Sonalee Parekh will resign.

Management

RingCentral Inc Announces CFO Sonalee Parekh To Resign Effective September 10, 2024; Company Begins Search For Successor; No Change To Outlook

Deutsche Bank analyst Matthew Niknam maintains RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Buy and raises the price target from $42 to $45.

Price Target

Analyst Ratings

Deutsche Bank Maintains Buy on RingCentral, Raises Price Target to $45

Baird analyst William Power maintains RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Neutral and raises the price target from $35 to $36.

Baird Maintains Neutral on RingCentral, Raises Price Target to $36

Needham analyst Ryan Koontz reiterates RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Buy and maintains $42 price target.

Reiteration

Needham Reiterates Buy on RingCentral, Maintains $42 Price Target

Wells Fargo analyst Michael Turrin maintains RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Equal-Weight and raises the price target from $28 to $35.

Wells Fargo Maintains Equal-Weight on RingCentral, Raises Price Target to $35

Northland Capital Markets analyst Michael Latimore maintains RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Outperform and raises the price target from $43 to $50.

Northland Capital Markets Maintains Outperform on RingCentral, Raises Price Target to $50

Rosenblatt analyst Catharine Trebnick upgrades RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) from Neutral to Buy and raises the price target from $35 to $45.

Upgrades

Rosenblatt Upgrades RingCentral to Buy, Raises Price Target to $45

RingCentral shares are trading higher following a Q2 earnings beat.

Guidance

RingCentral Q3 2024 Subscriptions Revenue $572M-$575M, Total Revenue $600.5M-$603.5M, Both Up 8% YoY; GAAP Operating Margin -1.3% --0.7%; Non-GAAP Operating Margin 21.0%; Non-GAAP Tax Rate 22.5%; Non-GAAP EPS $0.92 - $0.93; Share-Based Compensation $96M - $98M; Amortization Of Acquired Intangibles $35M; Restructuring Costs $0-$1M

RingCentral FY 2024 Raising Subscriptions Revenue To $2.282-$2.288B And Total Revenue To $2.393-$2.399B, Both Up 9%; Updating GAAP Operating Margin To -1.3% - -0.8%; Maintaining Non-GAAP Operating Margin Of 21.0% And Tax Rate Of 22.5%; Raising Non-GAAP EPS To $3.62 - $3.67; Lowering Share-Based Compensation To $370-$380M; Maintaining $140M Amortization Of Acquired Intangibles; Updating Restructuring Costs To $6-$7M; Raising Free Cash Flow To $395-$400M

RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) reported quarterly earnings of $0.91 per share which beat the analyst consensus estimate of $0.88 by 3.41 percent. The company reported quarterly sales of $592.91 million which beat the analyst consensus estimate of $586.38 million by 1.11 percent. This is a 9.94 percent increase over sales of $539.30 million the same period last year.

Earnings Beats

RingCentral Q2 2024 Adj EPS $0.91 Beats $0.88 Estimate, Sales $592.91M Beat $586.38M Estimate

Markets experienced a sharp downturn, driven by heightened geopolitical tensions and economic uncertainties that negatively impacted investor risk sentiment, just a day after the Federal Open Market Committee (FOMC) meeting signaled a potential interest <a href="https://www.benzinga.com/news/large-cap/24/07/40080168/jerome-powell-finally-concedes-rate-cut-could-be-on-the-table-in-september-stocks-gold-rise-dollar">rate cut in September.</a>
U.S. economic data released Thursday revealed a larger-than-expected rise in weekly jobless claims and a more pronounced contraction in manufacturing activity for July. 
Initial unemployment claims increased to 249,000, up from 235,000 the previous week, marking the highest level in nearly a year. The ISM manufacturing PMI dropped to 46.8% in July, extending its contraction for the fourth consecutive month and reaching its lowest point since December 2023.
In geopolitical developments, Israel announced the elimination of Hamas&#8217; military leader Mohammed Deif in a Gaza strike last month. This event followed the assassination of another top Hamas official in Tehran and the killing of Hezbollah&#8217;s commander in Beirut. Iranian officials are considering retaliatory measures against Israel, which has vowed to respond to any threats with force.
Amid rising risk aversion, Wall Street abruptly reversed prior session gains. The S&amp;P 500 Index declined by about 1% in midday trading in New York, while the Nasdaq 100 fell by 1.5% due to another wave of semiconductor selloffs driven by disappointing corporate earnings reports.
The economically-sensitive Russell 2000 index plummeted over 3%, heading for its worst session since April.
Safe-haven assets gained traction, with both the U.S. dollar and Treasuries seeing increased demand. The U.S. dollar index (DXY), tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rose 0.3%, while long-term Treasuries, as represented by the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), surged 0.7%.
Oil prices declined by 1.5% after a 4.4% surge the previous day, as investors focused on demand concerns amid weakening economic indicators. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell by 2.6%, trading at $62,900.
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day chg. %</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,470.62</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,335.79</td>
<td>-1.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,079.71</td>
<td>-1.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,190.02</td>
<td>-3.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:15 p.m. ET</figcaption></figure>
According to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent080124&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.9% lower to $546.13.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 1% to $404.23.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1.5% to $464.25.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 3% to $217.10.</li>
<li>Sector-wise, the Real Estate Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)&nbsp;outperformed, rallying 1.3%, while the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 2.2%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
Stocks reacting to earnings were: 
<ul>
<li>American International Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>), down 7%,</li>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), down over 15%,</li>
<li>Anheuser-Busch InBev SA/NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>), up 2.7%, </li>
<li>Bausch Health Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHC#NYSE">BHC</a>), up 0.5%,</li>
<li>Biogen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIIB#NASDAQ">BIIB</a>), down 2.8%,</li>
<li>Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>), up 8.3%,</li>
<li>Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), down 4.8%,</li>
<li>C.H. Robinson Worldwide, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHRW#NASDAQ">CHRW</a>), up 14.3%,</li>
<li>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), down 1.8%</li>
<li>Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>), up 2.8%,</li>
<li>eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>) up 3%,</li>
<li>EVgo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVGO#NASDAQ">EVGO</a>), down 2.3%,</li>
<li>Everest Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EG#NYSE">EG</a>), down 6.8%,</li>
<li>Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>), down 0.4%,</li>
<li>Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>), down 2.5%,</li>
<li>Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), down 9%,</li>
<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), up 6%,</li>
<li>Mobileye Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>), down over 20%,</li>
<li>Regeneron Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>), up 1.2%,</li>
<li>Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), down over 8%,</li>
<li>Sirius XM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>), down over 6%,</li>
<li>Teladoc Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>), down over 5%,</li>
<li>Wayfair Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>) down over 7%</li>
</ul>
Those reporting after the close include:
Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Beazer Homes USA, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BZH#NYSE">BZH</a>), BigBear.ai Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>), Block, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>), Cloudflare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>), Clorox Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>), Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>), Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>), RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>), Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>), Vertex Pharmaceuticals Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRTX#NASDAQ">VRTX</a>), Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>) and United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>).
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Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
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US Stocks Tumble On Economic, Geopolitical Concerns; Small Caps, Chipmakers Sink; Meta Rallies: What's Driving Markets Thursday?

After Wednesday&#8217;s tech-led rebound amid the Federal Reserve&#8217;s rate decision, the stock market could be in for further gains. The major index futures point to a higher opening, although suggesting a slowdown in the upward momentum is in the cards. Despite <a href="https://www.benzinga.com/news/large-cap/24/07/40080168/jerome-powell-finally-concedes-rate-cut-could-be-on-the-table-in-september-stocks-gold-rise-dollar">Federal Reserve Chair Jerome Powell&#8217;s non-committal stance, </a>the market has begun discounting a September rate cut. This is evident from the extended pullback in bond yields and the rally in dollar-denominated commodities. The imminent release of the July non-farm payrolls report could introduce some caution.
The market could receive support from positive reactions to Meta Platforms, Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) earnings even as it may choose to remain on &#8220;wait-and-watch&#8221; mode ahead of another batch of mega-cap tech earnings from the likes of Amazon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>).
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.34%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.33%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.15%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.35%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Thursday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) moved up 0.31% to $547.16, and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.48% to $473.35, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks closed Wednesday&#8217;s session higher, with the S&amp;P 500 and the Nasdaq Composite rising solidly amid positive reaction to tech earnings. The Dow Jones Industrials Averages saw some moments of anxiety but stayed mostly in the green before closing modestly higher. All three averages experienced some degree of volatility amid the Fed decision, rising sharply following the release of the post-meeting policy statement. They gave back much of these gains after Powell&#8217;s presser and yet closed firmly in the green.
As expected, the central bank used the July meeting to prepare the markets for a September rate cut, said Jeffrey Roach, chief economist at LPL Financial. The rate-setting committee noted a slowdown in the labor market and said Inflation continued to move into better balance.
Weighing in on Powell&#8217;s press conference, &nbsp;Chris Zaccarelli, Chief Investment Officer at Independent Advisor Alliance, said the chairman tried to strike a neutral tone. Powell explained &#8220;why today was too soon to cut rates, but effectively said that his base case was for a 25 bps rate cut even while leaving open the possibility that they may be forced to wait again (e.g. zero cuts) or even that they would move even more quickly (e.g. several cuts),&#8221; he said.
IT stocks rallied strong and hard, while communication services, consumer discretionary, industrial, material and utility stocks also gained ground.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td> Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+2.64%</td>
<td>17,599.40</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+1.58%</td>
<td>5,522.30</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.24%</td>
<td>40,842.79</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.51%</td>
<td>2,254.48</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Monica Guerra, Head of Policy, Morgan Stanley Wealth Management, said analysis of several key economic indicators suggests the Republican candidate may still have an edge in the November election. &#8220;Recent economic cooling may be a disadvantage for Democrats, with slower annualized first-quarter GDP growth of 1.3%, down from 3.4% in 2023's fourth quarter, corresponding to a 1.4% drop in the president's approval rating this year,&#8221; she said.
Still elevated prices and interest rates, which will likely remain high by historical standards even after the Fed cut rates, may not bode well for the Democratic nominee, she added
Guerra said the performances of different equity sectors also point to a Republican win. She noted that her team experimented with two equity baskets each containing 12 sectors and industry ETFs that could benefit from a Democratic or Republican win. &#8220;So far this year, the Republican basket (which includes sectors such as Energy, Materials, Utilities and Real Estate) has outperformed by 9% the Democratic basket (including solar energy, tech and infrastructure stocks). This suggests growing investor confidence in a GOP victory,&#8221; she said.
Upcoming Economic Data:
<ul>
<li>The Labor Department is due to release the weekly jobless claims report at 8:30 a.m. EDT. Economists, on average, expect the number of individuals claiming unemployment benefits to come in at 235,000 in the week ended July 27, flat with the number for the previous reporting week.</li>
<li>The S&amp;P Global will release the final July manufacturing purchasing managers&#8217; index at 9:45 a.m. EDT. Flash reading released in July showed a reading of 49.5, suggesting contracting activity, down from 51.6 in June.</li>
<li>The Institute for Supply Management is due to release the results of its national manufacturing survey at 10 a.m. EDT. The manufacturing PMI for July is expected at 48.9, slightly up from 48.5 in June.</li>
<li>The Commerce Department&#8217;s construction spending report, due at 10 a.m. EDT, is expected to show a 0.2% month-over-month increase following a 0.1% drop in May.</li>
<li>The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT.</li>
</ul>
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Stocks In Focus:
<ul>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) fell over 10% in <a href="https://www.benzinga.com/premarket">premarket trading</a> following the chipmaker&#8217;s quarterly results.</li>
<li>The other stocks reacting to earnings are C.H. Robinson Worldwide, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHRW#NASDAQ">CHRW</a>) (up over 11.5%), Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>) (up over 13.50%), Meta (up over 6.6%), and Teladoc Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>) (down about 17%).</li>
<li>Anheuser-Busch InBev SA/NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>), Bausch Health Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHC#NYSE">BHC</a>), Biogen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIIB#NASDAQ">BIIB</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>), EVgo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVGO#NASDAQ">EVGO</a>), Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>), Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>), Mobileye Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>), Regeneron Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>), Sirius XM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>), Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) and Wayfair Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>) are among the key companies due to <a href="https://www.benzinga.com/calendars/earnings">release their earnings reports ahead of the market opening.</a></li>
<li>Those reporting after the close include Amazon, Apple, Beazer Homes USA, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BZH#NYSE">BZH</a>), BigBear.ai Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>), Block, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>), Cloudflare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>), Clorox Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>), Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>), Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), MicroStrategy Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>), RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>), Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>), Vertex Pharmaceuticals Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRTX#NASDAQ">VRTX</a>), Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>) and United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil and gold futures extended gains and the yield on the 10-year Treasury note slipped 5.5 points 4.049%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) pulled back below the $65K level.
Asian stocks closed on a mixed note, with the Japanese market retreating sharply on the yen&#8217;s strength post the Bank of Japan&#8217;s rate decision. The Chinese and Hong Kong markets fell modestly after disappointing Chinese manufacturing data. The rest of the major markets in the region rose, towing in line with the sentiment on Wall Street overnight.
The European markets were mostly lower in early trading as traders await the Bank of England&#8217;s rate decision due shortly. 
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/40006542/apple-amazon-microsoft-meta-lead-the-charge-as-investors-bank-on-tech-cheer-for-ral">Apple, Amazon, Microsoft, Meta Lead The Charge As Investors Bank On Tech Cheer For Rally&#8217;s Reacceleration: Week Ahead In Earnings</a></li>
</ul>
Image Via Shutterstock

The earnings reports of last week were a mixed bag, with some Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) and STMicroelectronics N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STM#NYSE">STM</a>), among companies <a href="https://www.benzinga.com/news/earnings/24/07/39918390/tesla-q2-earnings-highlights-revenue-beat-eps-miss-robotaxi-update-2024-growth-rate-to-be-notably-l">disappointing to the downside</a>. As the focus shifts to the unfolding week, more tech companies are lined up to disclose their quarterly results, potentially offering cues regarding the health of the sector.
The Week That Was: Most on Wall Street viewed Tesla&#8217;s earnings as lacking quality because a significant portion of them came from one-time regulatory credits. On the other hand, Google-parent Alphabet alienated investors by flagging higher capex that will likely weigh down on margins and in turn the bottom line.
Franco-Italian chipmaker, which is a key supplier to the automotive market, cut its full-year guidance. But not all tech tidings were received with pessimism. International Business Machines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) rose as investors cheered the company&#8217;s strong artificial intelligence bookings. 
Healthy Trend: Data from financial data analytics company FactSet <a href="https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_072624C.pdf">showed</a> that about 14% of the S&amp;P 500 companies have reported their quarterly results so far. The percentage of S&amp;P 500 names that reported upside earnings surprise is 80%, above the one-year average (78%), five-year average (77%), and 10-year average (74%). But the percentage of upside was sub-part at 5.5%, below the one-year average (+6.5%), five-year average (+8.6%), and 10-year average (+6.8%).
The blended earnings of S&amp;P 500 companies are expected to grow by 9.7%, the fastest pace since the fourth quarter of 2021. Eight of the 11 S&amp;P 500 companies are on track to report year-over-year earnings growth for the June quarter, with communication Services, healthcare, IT, and financials likely reporting double-digit growth.
On the other hand, the materials space is expected to witness the steepest earnings decline.
See Also: <a href="https://www.benzinga.com/money/best-tech-stocks">Best Tech Stocks Right Now</a>
The Week Ahead: According to FactSet, this week will feature earnings reports from 138 S&amp;P 500 companies, including seven components of the Dow 30. Some heavily-weighted companies such as Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) are all in the mix.
Meta is expected to be the largest contributor to earnings per share growth, given the consensus models nearly 60% increase.
After last week&#8217;s brutal tech sell-off, a bullish analyst is optimistic concerning the the sector, its prospects and the stock trajectory. &#8220;We believe the tech sell-off seen last week will be short-lived as the Street better digests results and commentary from the broader tech sector over the coming weeks during 2Q earnings season,&#8221; Wedbush&#8217;s Daniel Ives said in a note published Sunday.
&#8220;This is the start….not the end of this tech bull run we expect the next few years,&#8221; he said, adding that companies, utilities, governments will spend over $1 trillion combined in AI capex over the coming years fueling this AI Revolution.
The analyst said investors will likely look for clues around the pace of AI revolution from the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39899280/microsoft-stock-has-further-room-to-run-says-analyst-as-software-giant-remains-on-t">earnings reports of Microsoft,</a> Amazon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta and Apple and others.
Tech stocks extended their weekly declines in the week ended July 26 amid the disappointment from early tech reporters. The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), an index that tracks the performance of the Nasdaq 100 Index, ended Friday&#8217;s session down 1.03% to $462.97, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a> The ETF is trading off its record close of $502.96 reached on July 10. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) climbed 1.12% on Friday before closing at $5544.44. The QQQ and SPY climbed 0.48% and 0.25%, respectively, in premarket trading Monday.
Notable among the companies reporting this week are:
Monday
Before market open:
<ul>
<li>McDonald&#8217;s Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>)</li>
<li>ON Semiconductor Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>)</li>
</ul>
After close:
<ul>
<li>F5, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIV#NASDAQ">FFIV</a>)</li>
<li>Rambus Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMBS#NASDAQ">RMBS</a>)</li>
<li>Lattice Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>)</li>
<li>Chesapeake Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>)</li>
<li>Sanmina Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SANM#NASDAQ">SANM</a>)</li>
<li>Tilray Brands, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLRY#NASDAQ">TLRY</a>)</li>
</ul>
Tuesday
Before market open:
<ul>
<li>American Electric Power Company, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEP#NASDAQ">AEP</a>)</li>
<li>Archer-Daniels-Midland Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>)</li>
<li>BP p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>)</li>
<li>Illinois Tool Works Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITW#NYSE">ITW</a>)</li>
<li>JetBlue Airways Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>)</li>
<li>LGI Homes, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LGIH#NASDAQ">LGIH</a>)</li>
<li>Logitech International S.A. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOGI#NASDAQ">LOGI</a>)</li>
<li>Merck &amp; Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>)</li>
<li>PayPal Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>)</li>
<li>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>)</li>
<li>Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>)</li>
<li>Restaurant Brands International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>)</li>
<li>SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>)</li>
</ul>
After close:
<ul>
<li>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>)</li>
<li>Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>)</li>
<li>Caesars Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NASDAQ">CZR</a>)</li>
<li>DoubleVerify Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DV#NYSE">DV</a>)</li>
<li>Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>)</li>
<li>First Solar, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>)</li>
<li>Freshworks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRSH#NASDAQ">FRSH</a>)</li>
<li>Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>)</li>
<li>Match Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTCH#NASDAQ">MTCH</a>)</li>
<li>Microsoft</li>
<li>Mondelez International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>)</li>
<li>Pinterest, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>)</li>
<li>Skyworks Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>)</li>
<li>Starbucks Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>)</li>
<li>Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>)</li>
</ul>
Wednesday
Before market open:
<ul>
<li>Altria Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>)</li>
<li>AutoNation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>)</li>
<li>Barrick Gold Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>)</li>
<li>Bausch + Lomb Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLCO#NYSE">BLCO</a>)</li>
<li>Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)</li>
<li>DuPont de Nemours, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DD#NYSE">DD</a>)</li>
<li>Garmin Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRMN#NYSE">GRMN</a>)</li>
<li>GSK plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSK#NYSE">GSK</a>)</li>
<li>Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>)</li>
<li>KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>)</li>
<li>&nbsp;Kraft Heinz Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KHC#NASDAQ">KHC</a>)</li>
<li>Oshkosh Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OSK#NYSE">OSK</a>)</li>
<li>Teva Pharmaceutical Industries Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEVA#NYSE">TEVA</a>)</li>
<li>Marriott International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>)</li>
<li>Wingstop Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WING#NASDAQ">WING</a>)</li>
<li>T-Mobile US, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>)</li>
<li>Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>)</li>
</ul>
After close:
<ul>
<li>Albemarle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>)</li>
<li>American International Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>)</li>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)</li>
<li>C.H. Robinson Worldwide, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHRW#NASDAQ">CHRW</a>)</li>
<li>Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>)</li>
<li>eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>)</li>
<li>Etsy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>)</li>
<li>Host Hotels &amp; Resorts, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HST#NASDAQ">HST</a>)</li>
<li>Lam Research Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>)</li>
<li>Meta</li>
<li>MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>)</li>
<li>NETGEAR, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTGR#NASDAQ">NTGR</a>)</li>
<li>QUALCOMM Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>)</li>
<li>Teladoc Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>)</li>
<li>Western Union Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WU#NYSE">WU</a>)</li>
</ul>
Thursday
Before market open:
<ul>
<li>Anheuser-Busch InBev SA/NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>)</li>
<li>Bausch Health Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHC#NYSE">BHC</a>)</li>
<li>Biogen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIIB#NASDAQ">BIIB</a>)</li>
<li>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>)</li>
<li>Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>)</li>
<li>EVgo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVGO#NASDAQ">EVGO</a>)</li>
<li>&nbsp;Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>)</li>
<li>Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>)</li>
<li>Mobileye Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>)</li>
<li>Regeneron Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>)</li>
<li>Sirius XM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>)</li>
<li>Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>)</li>
<li>Wayfair Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>)</li>
</ul>
After close:
<ul>
<li>Amazon</li>
<li>Apple</li>
<li>Beazer Homes USA, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BZH#NYSE">BZH</a>)</li>
<li>BigBear.ai Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>)</li>
<li>Block, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>)</li>
<li>Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>)</li>
<li>Cloudflare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>)</li>
<li>Clorox Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>)</li>
<li>Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</li>
<li>DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>)</li>
<li>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)</li>
<li>Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>)</li>
<li>MicroStrategy Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>)</li>
<li>Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>)</li>
<li>RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>)</li>
<li>Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>)</li>
<li>Vertex Pharmaceuticals Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRTX#NASDAQ">VRTX</a>)</li>
<li>Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>)</li>
<li>United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>)</li>
</ul>
Friday
Before market open:
<ul>
<li>Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</li>
<li>Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)</li>
<li>Magna International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>)</li>
<li>Cinemark Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNK#NYSE">CNK</a>)</li>
<li>Fluor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLR#NYSE">FLR</a>)</li>
</ul>
After close:
<ul>
<li>AMC Entertainment Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>)</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39925881/alphabet-investors-fret-over-margin-impact-of-higher-ai-related-capex-but-fund-mana">Alphabet Investors Fret Over Margin Impact Of Higher AI-related Capex, But Fund Manager Says Not Spending Enough Exposes Google&#8217;s Parent To Risk Of &#8216;Losing Their Grip On The Future&#8217;</a></li>
</ul>
Image via Shutterstock

Analyst Color

ANET

BLCO

ETSY

FFIV

FRSH

FSLR

GOLD

GOOG

GOOGL

GRMN

JBLU

LGIH

LOGI

LSCC

MDLZ

MSFT

MTCH

NCLH

NTGR

PINS

PYPL

QRVO

RMBS

SANM

SBUX

SOFI

Apple, Amazon, Microsoft, Meta Lead The Charge As Investors Bank On Tech Cheer For Rally's Reacceleration: Week Ahead In Earnings

RingCentral (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rng#NYSE">RNG</a>) closed the last trading session at $30.76, gaining 7.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $39 indicates a 26.8% upside potential.
The average comprises 20 short-term price targets ranging from a low of $28 to a high of $52, with a standard deviation of $6.42. While the lowest estimate indicates a decline of 9% from the current price level, the most optimistic estimate points to a 69.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That&#39;s because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for RNG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company&#39;s ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn&#39;t gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
<img alt="Zacks Price, Consensus and EPS Surprise Chart for RNG" class="chart" src="https://chart-service.zacks.com/images/daily/yesop_price_consensus_surprise/RNG.png" style="height:auto; width:100%" title="" />
Here&#39;s What You May Not Know About Analysts&#39; Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company&#39;s fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock&#39;s price movement. While that doesn&#39;t necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here&#39;s Why There Could be Plenty of Upside Left in RNG
There has been increasing optimism among analysts lately about the company&#39;s earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 0.6%, as one estimate has moved higher compared to no negative revision.
Moreover, RNG currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock&#39;s potential upside in the near term.
Therefore, while the consensus price target may not be a reliable indicator of how much RNG could gain, the direction of price movement it implies does appear to be a good guide.
<a href="https://www.zacks.com/stock/news/2301669/wall-street-analysts-predict-a-26-79-upside-in-ringcentral-rng-here-s-what-you-should-know?cid=CS-BENZ-FT-tale_of_the_tape|consensus_price_target-2301669">To read this article on Zacks.com click here.</a>

Wall Street Analysts Predict a 26.79% Upside in RingCentral: Here's What You Should Know

DOCU

SOUN

Shares of software companies are trading higher amid overall market strength as investors assess this week's inflation data.

Piper Sandler analyst James Fish maintains RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Neutral and lowers the price target from $32 to $31.

Piper Sandler Maintains Neutral on RingCentral, Lowers Price Target to $31

Wells Fargo analyst Michael Turrin maintains RingCentral (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) with a Equal-Weight and lowers the price target from $33 to $28.

Wells Fargo Maintains Equal-Weight on RingCentral, Lowers Price Target to $28

With the escalating technological advancements and increasing dependence on SaaS solutions, the tech industry appears poised for consistent expansion. Amid this backdrop, it could be wise to invest in high-growth tech stocks DocuSign (DOCU), Box, Inc. (BOX), and RingCentral (RNG) with explosive potential. Continue reading... Companies are actively pursuing automation solutions to enhance productivity and streamline their operations. Therefore, investors could consider buying fundamentally sound tech stocks, DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>), Box, Inc. (<a href="https://stocknews.com/stock/BOX/">BOX</a>), and RingCentral, Inc. (<a href="https://stocknews.com/stock/RNG/">RNG</a>) with explosive potential.
Businesses are showing a growing interest in technology solutions that enhance business operations and boost efficiency. Services like cloud computing, cybersecurity, and artificial intelligence are among the most in-demand. Revenue in the IT services sector is expected to grow at a <a href="https://www.statista.com/outlook/tmo/it-services/worldwide">CAGR of 5.8%</a> by 2029.
Additionally, the global Software as a Service (SaaS) market is propelled by the increasing dependence on SaaS solutions that provide real-time threat intelligence and monitoring, the growing need for payment gateways and inventory management in e-commerce, and the expanding use of customer relationship management (CRM) solutions.
IMARC Group expects the global SaaS market to grow at a <a href="https://www.imarcgroup.com/software-as-a-service-market">CAGR of 15.5%</a> by 2032.
Given these favorable industry trends, let us dive deep into the fundamentals of the top tech stocks:
DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>)
DOCU offers electronic signature solutions internationally. The company provides an e-signature solution that enables the sending and signing of agreements, Contract Lifecycle Management that automates workflows, Document Generation streamlines the process of generating new, custom agreements, and more.
Over the past three years, DOCU's revenue has grown at a CAGR of 20%. Also, the company's total assets and levered free cash have increased at CAGRs of 8.4% and 19.9%, respectively, over the same period.
On June 4, DOCU announced the upcoming launch of its new Docusign Connector for SAP Ariba solutions, which is a new offering to automate workflows between Docusign CLM and SAP Ariba solutions to help businesses accelerate time to value and eliminate friction in source-to-pay agreement processes.
The new connector will be available globally starting from September. The launch reinforces DOCU's commitment to its partnership with SAP and its vision to transform agreement processes across the source-to-pay workflow.
On May 31, DOCU acquired Lexion, a leading AI-powered agreement management company. The strategic acquisition strengthens DOCU's Intelligent Agreement Management (IAM) position and introduces new AI-assisted capabilities to the Docusign IAM platform.
For the first quarter that ended April 30, 2024, DOCU's total revenue increased 7.3% year-over-year to $709.64 million. Its non-GAAP gross profit rose 6.5% from the year-ago value to $582.17 million. The company's non-GAAP income from operations of $202.09 million indicates growth of 15% from the prior year's quarter.
In addition, the company's non-GAAP net income came in at $172.84 million and $0.82 per share, up 15.1% and 13.9% from the prior year's quarter, respectively.
As per the company's second-quarter 2024 guidance, DOCU expects total revenue between $725 million and $729 million, and its subscription revenue is expected to range from $705 million to $709 million. For the full year, the company expects total revenue of $2.92 billion - $2.93 billion and subscription revenue of $2.84 billion to $2.85 billion.
Analysts expect DOCU's revenue and EPS for the second quarter (ended July 2024) to increase 5.8% and 11.8% year-over-year to $727.23 million and $0.80, respectively. Moreover, the company topped the consensus revenue and EPS estimates in all four trailing quarters.
DOCU's stock has surged 32.4% over the past nine months and 14.5% over the past year to close the last trading session at $56.46.
DOCU's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
DOCU has an A grade for Growth and Quality and a B for Value. It is ranked first among 18 stocks in the A-rated <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry.
<a href="https://stocknews.com/stock/DOCU/">Click here</a> to access the additional DOCU ratings (Momentum, Stability, and Sentiment). 
Box, Inc. (<a href="https://stocknews.com/stock/BOX/">BOX</a>)
BOX provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device. It serves financial services, health care, government, and legal services industries internationally.
On June 27, 2024, BOX announced powerful enhancements to BOX AI, including unlimited queries for Enterprise Plus customers, integration with GPT-4, and support for more file types. New features are expected to improve content management and workflow efficiency using advanced AI capabilities.
BOX's revenue grew at a CAGR of 10% over the past three years, and its EBITDA grew at a CAGR of 23% during the same period.
In terms of the trailing-12-month Return on Total Capital, BOX's 6.99% is 146.2% higher than the 2.84% industry average. Likewise, its 11.73% trailing-12-month Return on Total Assets is 440% higher than the industry average of 2.17%. Its 0.92x trailing-12-month <a href="https://www.investopedia.com/terms/a/assetturnover.asp">asset turnover ratio</a> is 48.9% higher than the industry average of 0.62x.
BOX's revenues for the first quarter ended April 30, 2024, increased 5.1% year-over-year to $264.66 million. Its non-GAAP gross profit increased 8.1% year-over-year to $212.18 million. The company's non-GAAP operating income increased 22.7% year-over-year to $70.40 million.
Additionally, its non-GAAP attributable net income increased 22.9% year-over-year to $58.40 million. Its non-GAAP attributable net income per share increased 21.9% year-over-year to $0.39. Also, the company's non-GAAP free cash flow came in at $123.24 million, representing an increase of 13.9% year-over-year.
BOX expects its revenue for the quarter ended July 31, 2024, to be between $268 million and $270 million, showing a 3% increase year-over-year. Also, its non-GAAP diluted net income per share is expected to be between $0.40 and $0.41.
Analysts expect BOX's EPS and revenue for the quarter ended July 31, 2024, to increase 12.5% and 3% year-over-year to $0.41 and $269.20 million, respectively. It surpassed the revenue and EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has gained 6.8% to close the last trading session at $28.01.
BOX's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Quality and Growth and a B for Value. BOX is ranked #8 in the <a href="https://stocknews.com/category/technology-services/">Technology - Services</a> industry.
Beyond what is stated above, we've also rated BOX for Sentiment, Stability, and Momentum. Get all BOX ratings <a href="https://stocknews.com/stock/BOX/">here</a>.
RingCentral, Inc. (<a href="https://stocknews.com/stock/RNG/">RNG</a>)
RingCentral, along with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company's products include RingCentral Message Video Phone, RingCentral Contact Center, RingCX, RingCentral Video, and RingCentral Professional Services, serving various industries.
Over the past three years, RNG's revenue has grown at a CAGR of 24.2%. Also, the company's total assets and levered free cash have increased at CAGRs of 122.6% and 41.1%, respectively, over the same period.
In terms of the trailing-12-month gross profit margin, RNG's 70.24% is 41.4% higher than the 49.68% industry average. Likewise, its 24.68% trailing-12-month levered FCF margin is 137.3% higher than the 10.40% industry average. Furthermore, its 1.22x trailing-12-month asset turnover ratio is 96.9% higher than the 0.62x industry average.
For the second quarter that ended June 30, 2024, RNG's total revenues increased 93.9% year-over-year to $592.91 million. Its non-GAAP income from operations rose 18.9% from the year-ago value to $124.19 million. The company's non-GAAP net income of $86.20 million indicates growth of 7.7% from the prior year's quarter.
In addition, the company's non-GAAP net income per share came in at $0.91, up 9.7% from the prior year's quarter.
Analysts expect RNG's revenue and EPS for the third quarter (ending September 2024) to increase 7.9% and 18.2% year-over-year to $602.17 million and $0.92, respectively. Moreover, the company topped the consensus revenue and EPS estimates in all four trailing quarters.
RNG's stock has surged 11.7% over the past nine months and 13.4% over the past year to close the last trading session at $33.96.
RNG's POWR Ratings reflect bright prospects. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
RNG has an A grade for Growth and Value and a B for Quality. It is ranked #6 out of 39 stocks in the B-rated <a href="https://stocknews.com/category/software-business/">Software - Business</a> industry.
In addition to the POWR Ratings highlighted above, one can access RNG's ratings for Momentum, Stability, and Sentiment <a href="https://stocknews.com/stock/RNG/">here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
DOCU shares were trading at $56.67 per share on Friday afternoon, up $0.21 (+0.37%). Year-to-date, DOCU has declined -4.68%, versus a 17.36% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/docu-box-rng-3-hyper-growth-tech-stocks-with-explosive-potential-80856303/>3 Hyper-Growth Tech Stocks With Explosive Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Hyper-Growth Tech Stocks With Explosive Potential

Columbia Seligman Global Technology Fund Q2 2024 Investment Commentary

RingCentral: Expect Continued Margin Expansion, Steady Debt Reduction

RingCentral: Balanced Growth Strategy To Drive AI Sales And Generating Cash

RingCentral CFO Parekh resigns, joins Asana as new CFO

RingCentral (RNG) has shared an update. Sonalee Parekh will step down as the CFO of RingCentral, Inc. on September 10, 2024, to join another public...

RingCentral CFO Transition and Maintained Financial Outlook

Analysts have been eager to weigh in on the Technology sector with new ratings on RingCentral (RNG – Research Report), Zscaler (ZS – Research Repor...

Analysts' Opinions Are Mixed on These Technology Stocks: RingCentral (RNG), Zscaler (ZS) and Asana (ASAN)

Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Zscaler (ZS – Research Report) and RingCentral (RN...

Analysts Offer Insights on Technology Companies: Zscaler (ZS) and RingCentral (RNG)

Asana sinks following latest earnings as multiple firms lower price targets

Datadog (DDOG) reported mixed financial results in the second quarter of 2024. While the cloud-based monitoring and analytics platform operator's long-term outlook appears bright with strategic investments and innovations, it faces mixed analysts' expectations and rigid competition. So, should you buy or hold this stock? Read more to find out... Datadog, Inc. (<a href="https://stocknews.com/stock/DDOG/">DDOG</a>) is an operator of an observability and security platform for cloud applications. It offers a wide range of products, including infrastructure and application performance monitoring, log management, digital experience monitoring, and database monitoring.
The company easily beat the analysts' estimates in the last reported quarter. It reported second-quarter revenue of $645.28 million, exceeding analysts' expectations of $625.10 million. Its EPS came in at $0.43, compared to the consensus estimate of $0.36.
During the second quarter, Datadog introduced various new products and capabilities like Datadog Kubernetes Autoscaling and Log Workspaces. The company continued its efforts of delivering innovations to cater to the customers and help them observe their environments, secure their infrastructures and workloads, and take necessary measures to remediate problems actively.
Olivier Pomel, co-founder and CEO of Datadog, commented, "Datadog executed well in the second quarter, with 27% year-over-year revenue growth, continued customer growth, and expanding multi-product adoption across our platform."
Datadog holds strong leadership in cloud monitoring and analytics in the cloud computing segment. The segment refers to the on-demand seamless access of computing resources consisting of servers, storage, databases, networking, software, analytics, and intelligence over the Internet.
However, DDOG competes with other leading cloud computing-centric companies driven by AI. These include Domo Inc. (<a href="https://stocknews.com/stock/DOMO/">DOMO</a>), Okta Inc. (<a href="https://stocknews.com/stock/OKTA/">OKTA</a>), Olo Inc. (<a href="https://stocknews.com/stock/OLO/">OLO</a>), and Workday Inc. (<a href="https://stocknews.com/stock/WDAY/">WDAY</a>), which are set to deliver significant returns in the mid to long term. This can result in compromised profitability for DDOG as companies strive to leverage AI and enhance their capabilities and offerings
As per the company's third-quarter 2024 outlook, DDOG expects revenue between $660 million and $664 million. Its non-GAAP operating income is anticipated to be $146 million - $150 million, while non-GAAP net income per share is set to be $0.38 to $0.40.
For the full year 2024, Datadog's revenue is expected to range from $2.62 billion to $2.63 billion. The company's non-GAAP operating income is expected to be between $620 million and $630 million. And non-GAAP net income per share is projected to be $1.62 - $1.66.
Shares of DDOG have gained 8% over the past month and 12.3% over the past year to close its last trading session at $110.09. However, the stock has declined 10.9% over the past six months.
Let's look at factors that could influence DDOG's performance in the upcoming months.
Positive Recent Developments
On June 26, DDOG unveiled Datadog Kubernetes Autoscaling, a set of capabilities that intelligently automates resource optimization and automatically scales customers' Kubernetes environments based on real-time and historical utilization metrics. This made DDOG the first observability vendor to offer its customers to make changes to their Kubernetes environments.
Also, on the same day, the company launched Log Workspaces, a suite of capabilities in a powerful, collaborative space enabling analysts and engineers from all teams in an organization to connect logs and other datasets and build multi-stage queries to answer complex questions on business, security and application issues of sophisticated analytics.
Datadog also announced new additions to its security product portfolio, including Agentless Scanning, Data Security, and Code Security, allowing DevOps and security teams to easily secure their code, cloud environments, and production applications.
Mixed Financials
For the second quarter that ended June 30, 2024, DDOG's revenue increased 26.6% year-over-year to $645.28 million. However, its cost of revenue also increased 21.3% year-over-year to $123.50 million. The company's non-GAAP <a href="https://www.investopedia.com/terms/g/grossprofit.asp#:~:text=Gross%20profit%2C%20or%20gross%20income,fluctuate%20compared%20to%20production%20output.">gross profit</a> grew 27.9% from the year-ago value to $529.52 million, while the non-GAAP operating income of $157.54 million reflects an increase of 48% from the prior year's quarter.
Furthermore, the company's non-GAAP net income after non-GAAP tax adjustments came in at $152.96 million and $0.43 per share, up 50.8% and 48.3% year-over-year, respectively. Also, its free cash flow increased 1.4% year-over-year to $143.78 million.
However, the company's total liabilities stood at $2.01 billion as of June 30, 2024, compared to $1.91 billion as of December 31, 2023.
Favorable Historical Growth
DDOG's revenue grew at a CAGR of 46.3% over the past three years. Its tangible book value increased at a CAGR of 47.2% over the same period, while the company's total assets grew at a CAGR of 28.6% over the same time frame.
However, the company's levered free cash flow increased at a CAGR of 81.2% over the same timeframe.
Mixed Analyst Estimates
Analysts expect DDOG's revenue for the third quarter (ending September 2024) to come in at $664.75 million, indicating an increase of 21.4% year-over-year. However, its consensus EPS estimate of $0.40 for the same period reflects a 12.1% year-over-year decline. The company has surpassed the consensus revenue and EPS estimates in all of the trailing four quarters.
Further, for the fiscal year 2024, the company's revenue and EPS are anticipated to grow 23.7% and 26.8% year-over-year to $2.63 billion and $1.67, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 22.3% and 16.1% from the prior year to $3.22 billion and $1.94, respectively.
Elevated Valuation
In terms of forward EV/Sales, DDOG is currently trading at 13.34x, 380.6% higher than the industry average of 2.78x. The stock's forward non-GAAP P/E and Price/Sales of 65.75x and 14.10x are considerably higher than the industry average of 22.90x and 2.77x, respectively.
Additionally, the stock's forward EV/EBITDA and Price/Book of 52.02x and 14.18x are 271.4% and 251.6% higher than the industry averages of 14.01x and 4.03x, respectively.
POWR Ratings Reflect Uncertainty
DDOG's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. DDOG has an A grade for Growth, in sync with its favorable historical growth.
However, the stock has a D grade for Value and Stability, consistent with its elevated valuation and mixed analysts' estimates.
DDOG is ranked #17 among the 39 stocks in the <a href="https://stocknews.com/category/software-business/">Software - Business</a> industry.
Beyond what I have stated above, we have also given DDOG grades for Momentum, Sentiment, and Quality. Get access to all the DDOG ratings <a href="https://stocknews.com/stock/DDOG/">here</a>.
Bottom Line
DDOG reported mixed financial results in the last reported quarter. Further, the company's long-term prospects appear promising, driven by its strategic investments and continuous innovations. However, it continues to grapple with increasing cost of expenses and rising competition from its peers.
Given DDOG's mixed financials and elevated valuation, waiting for a better entry point in this stock seems prudent.
Stocks to Consider Instead of Datadog, Inc. (DDOG)
Given its near-term uncertain prospects, the odds of DDOG outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/software-business/">Software - Business</a> industry instead:
SolarWinds Corporation (<a href="https://stocknews.com/stock/SWI/">SWI</a>)
VMware Inc. (<a href="https://stocknews.com/stock/VMW/">VMW</a>)
RingCentral Inc. Cl A (<a href="https://stocknews.com/stock/RNG/">RNG</a>)
For exploring more A and B-rated software stocks, <a href="https://stocknews.com/category/software-business/">click here</a>.
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<hr />
DDOG shares were trading at $107.20 per share on Friday afternoon, down $2.89 (-2.63%). Year-to-date, DDOG has declined -11.68%, versus a 14.42% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/ddog-swi-vmw-rng-domo-okta-olo-wday-with-ai-powered-analytics-is-datadog-ddog-a-stock-to-watch/>With AI-Powered Analytics, Is Datadog (DDOG) a Stock to Watch?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

With AI-Powered Analytics, Is Datadog (DDOG) a Stock to Watch?

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