Among the Zacks Rank #1 (Strong Buy) list, government program operator Maximus MMS and internet software services provider RingCentral RNG 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 Overview

Trading 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.  

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RingCentral’s Buy the Dip Overview

Catering 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%.

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Attractive Valuations

Following 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.

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Bottom Line

Although 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. 

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

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