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Maximus and RingCentral Show Strong Buy Potential Despite Market Challenges

As tariff concerns continue to rattle global markets, two stocks Maximus and RingCentral are emerging as compelling buy opportunities. Both companies are trading near their 52-week lows, presenting attractive entry points for investors seeking growth in a volatile environment. Maximus, a leading provider of government services, has experienced a 28% drop from its 52-week high of $93, recently hitting a one-year low of $63. The decline coincides with proposed cuts to U.S. government programs under the Trump administration. However, Maximus’s global footprint spanning Australia, Canada, and the UK offers critical diversification that helps mitigate domestic policy risks. Despite a slight dip in earnings, projections remain positive. The company is expected to post earnings growth exceeding 2% in fiscal year 2025 and over 5% in 2026, underlining its resilience and capacity to navigate market headwinds.

Similarly, RingCentral has seen its stock fall from a high of $42 to a 52-week low of $20. Yet, the company’s strong fundamentals make it an attractive buy in the tech sector. RingCentral has posted record free cash flow an important buffer during economic uncertainty and is strategically investing in AI to enhance its offerings. Notably, its AI Receptionist (AIR) and AI-powered contact center, RingCX, are designed to improve operational efficiency and customer satisfaction. With expected sales growth of 5% this year and continued innovation in AI, RingCentral is positioned for long-term success.

Both stocks are trading at notably low valuations compared to the broader market. Maximus sits at 11 times forward earnings, and RingCentral at just 5.3 times well below the S&P 500’s 19.2 times forward earnings ratio. This significant discount makes both companies attractive value plays with room for upside. While broader market uncertainty persists, Maximus and RingCentral offer strong buy potential thanks to their solid fundamentals, strategic initiatives, and undervalued positions. For investors looking to capitalize on current market dips, these stocks present promising growth prospects.

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