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Radcom - AI Stock Analysis

Analysis generated October 3, 2025

Radcom Ltd. is a provider of network intelligence solutions for telecom operators transitioning to 5G. The company offers products that provide insights into network performance and customer experience by utilizing cutting-edge technologies. Their solutions are essential in helping telecom operators ensure optimal service delivery, driving the company's relevance in a rapidly evolving industry.

Fundamental Analysis

Radcom's latest revenue reported was $18 million for the last quarter, a significant indicator of the company's growth. This revenue represents an increase of 6.43% compared to the previous quarter, which is a promising short-term growth indicator. Even more noteworthy is the 19.30% increase in revenue compared to the same quarter last year, showcasing substantial year-over-year growth.

The net income for the last quarter stood at $2.4 million. Although this is a tiny decrease of 0.08% from the quarter before, when examining year-over-year data, there is an impressive 42.82% growth. However, the EBITDA for the last quarter was $0, marking a 100% decrease from both the previous quarter and the same quarter last year, which could raise some concerns about operational efficiency.

The current Price-to-Earnings (P/E) ratio is 24.91, which sits comfortably within a typical range. This figure does not suggest that the stock is either undervalued or overvalued but is rather in line with industry practices, barring extreme market conditions.

Technical Analysis

Currently, Radcom's stock price stands at $14.07. This marks a 4.77% increase from a month ago, indicating a positive short-term price trend. Over a longer period, the stock price has increased by 38.89% compared to a year ago, which again underscores a positive long-term trend.

Nonetheless, the prevailing market sentiment appears bearish. The current Simple Moving Average (SMA10) is $14.28, which is slightly lower than the previous SMA10 of $14.34, suggesting a potential downward pressure on the stock. The Relative Strength Index (RSI) stands at 57.6, indicating a neutral condition. This neutrality in RSI suggests that the stock is neither overbought nor oversold.

Alternative Data Analysis

Turning to alternative data points, Radcom has 15 open positions, a 50% increase over the past couple of months. This expansion in hiring could be a signal of company growth and operational scaling. Employee sentiment, however, remains neutral, indicating that while the company is expanding, employee morale has not seen a significant uptick.

On the customer acquisition front, Radcom's website attracted approximately 11,000 visitors, a worrying 15% decrease in recent months. This could be a red flag signaling waning customer interest or engagement. Conversely, there has been a 12% increase in their Twitter followers, bringing the total to 150, which shows a growing interest in the company among social media users.

According to AltIndex’s AI score, which integrates various data types for stock prediction, Radcom holds a score of 67. This score leans towards a buy signal, indicating a generally positive outlook on the stock.

Conclusion and Recommendation

Based on the comprehensive analysis provided, Radcom Ltd. presents a mixed, yet predominantly positive investment thesis. The fundamental analysis reveals robust revenue and net income growth, although EBITDA figures warrant caution. Technically, while there is a positive price trend over the short and long term, current market sentiment is bearish.

Alternative data offers a mixed bag: growth in job postings and social media interest contrast with declining website visitors. AltIndex’s AI score of 67 supports a buy recommendation. Given these factors, cautious optimism is advised. Investors should weigh the strong revenue growth and positive long-term price trends against the bearish technical indicators and flat employee sentiment before making an investment decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.