Ooma (OOMA) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
A strong stock as of late has been Ooma (OOMA). Shares have been marching higher, with the stock up 15.7% over the past month. The stock hit a new 52-week high of $15.73 in the previous session. Ooma has gained 33.9% since the start of the year compared to the 6.1% gain for the Zacks Computer and Technology sector and the 100.8% return for the Zacks Communication - Components industry.
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 4, 2026, Ooma reported EPS of $0.34 versus consensus estimate of $0.31.
For the current fiscal year, Ooma is expected to post earnings of $1.28 per share on $322.82 in revenues. This represents a 23.08% change in EPS on a 17.99% change in revenues. For the next fiscal year, the company is expected to earn $1.41 per share on $335.15 in revenues. This represents a year-over-year change of 9.64% and 3.82%, respectively.
Ooma may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ooma has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 52.3X. On a trailing cash flow basis, the stock currently trades at 15.3X versus its peer group's average of 15.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Ooma currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ooma passes the test. Thus, it seems as though Ooma shares could have potential in the weeks and months to come.
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft $MSFT, Google $GOOGL, Amazon $AMZN, Oracle $ORCL, and even Meta $META and Tesla $TSLA, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
