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Radcom (RDCM) Soars 5.9%: Is Further Upside Left in the Stock?

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Radcom (RDCM - Free Report) shares ended the last trading session 5.9% higher at $14.62. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.4% loss over the past four weeks.

Radcom’s recent stock surge reflects growing investor optimism driven by solid business execution, expanding partnerships and rising demand for its AI-driven, automated service assurance solutions that help telecom operators manage complex 5G and cloud-native networks. Radcom’s focus on Agentic AI innovation, real-time network visibility and automation aligns well with industry trends as operators seek to optimize performance, reduce costs and enhance customer experience.

The company’s strong relationships with major Tier 1 customers such as AT&T and Rakuten, along with collaborations with technology leaders like NVIDIA and ServiceNow, further strengthen its market presence and growth prospects. Moreover, continued progress in R&D, expansion across key regions including North America, Japan and EMEA.

In the second-quarter 2025, the company’s total revenues reached $17.7 million, representing a 19.3% year-over-year increase, driven by strong momentum in key accounts and adoption of AI-powered network assurance solutions.

Fueled by a healthy sales pipeline, strong customer relationships and the market’s continued shift toward intelligent, automated, real-time assurance, RADCOM anticipates full-year revenue growth of 15%–18%, translating to a midpoint projection of $71.1 million.

This monitoring service for the communications industry is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -4.4%. Revenues are expected to be $17.9 million, up 13.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Radcom, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RDCM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Radcom is a member of the Zacks Computer - Networking industry. One other stock in the same industry, NetScout Systems (NTCT - Free Report) , finished the last trading session 0.3% higher at $26.51. NTCT has returned 5.6% over the past month.

For NetScout, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.45. This represents a change of -4.3% from what the company reported a year ago. NetScout currently has a Zacks Rank of #3 (Hold).


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