There’s always a variety of news when it comes to the market, but recently it’s been nearly all bad. Still, we think this downturn is reloading the bullish cannon. Our Top Pick is RingCentral Inc. (RNG), a cheap stock that’s shown great power of late and is now pulling back, writes Mike Cintolo, editor of Cabot Momentum Trader.
Treasury rates and oil prices are rising and hitting new highs, while the Federal Reserve is likely to hike rates this week. Now renewed worries concerning AI spending (and safety) have popped up. Not surprisingly, that has weighed on the market.
But the long, listless period and worsening sentiment will eventually lead to another uptrend. History shows these tight, “boring” periods usually resolve higher for at least a few months. We also don’t think the action is terrible at all given the news.
As for RingCentral, it operates a cloud-based communications platform offering business phone, video conferencing, and team messaging services that competes with Zoom and Microsoft Teams. Like most of its peers, its heyday was during the pandemic years of 2020 and 2021.
It fell out of favor with investors shortly after that. But the company’s fortunes have markedly improved this year as it positions itself as more of an AI- and customer-engagement provider rather than just a business phone company. In fact, RingCentral now describes itself as an agentic voice-AI platform leader.
After a huge decline, RingCentral stock finally perked up in April 2025 – and spent the next 10 months bottoming out. A big rally on earnings followed. Then after another few months of hacking around, the stock truly changed character in July, zooming to multi-year highs on big volume. The recent dip looks normal.
