OOMA Stock Analysis: Buy, Sell, or Hold?

OOMA - Ooma, Inc. Common Stock

SERVICES-COMPUTER PROCESSING & DATA PREPARATION
$19.49
-0.11 (-0.56%) ▼
5d: +11.05%
30d: +10.42%
90d: +31.6%
BUY
MODERATE Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 25, 2026

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: OOMA shows positive signals but monitor for confirmation. Market pricing in 7.3% annual growth which appears achievable. Moderate conviction.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$30.67
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$19.04
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 12.5x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: OOMA is currently trading at $19.49, which is considered extended relative to its 30-day fair value range of $17.02 to $18.70. From a valuation perspective, the stock is trading at a premium (Forward PE: 15.5) compared to its historical average (12.5). At these levels, the market is pricing in 7.3% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, OOMA is in a strong uptrend. Immediate support is located at $16.25, while resistance sits at $21.96.

Market Sentiment: OOMA has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $23.00 (+18.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $17.02 - $18.70
Company Quality Score 61/100 (BUY)
Volume Confirmation HIGH
Confidence Score 66.5%

All Signals

  • BEARISH: Price extended above range
  • BULLISH: Options cheap (IV 0th percentile)
  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($23.00)
  • NEUTRAL: Trading at premium valuation - market expects 7.3% growth which is achievable

Trading Range Analysis

30-Day Trading Range $17.02 - $18.70
Current vs Trading Range EXTENDED
Expected Move (7 Days) ±$1.24 (6.3%)

Support & Resistance Levels

Support Level $16.25
Resistance Level $21.96
Current Trend Strong Uptrend
Technical data as of Jun 9, 2026

Fundamental Context

Forward P/E (Next Year Est.) 15.47
Wall Street Target $23.00 (+18.0%)
Revenue Growth (YoY) 24.8%
Profit Margin 3.2%
Valuation Premium vs History +7.3% premium
PE vs Historical 15.5 vs 12.5 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +7.3% (market-implied from PE analysis)
1-Year Target $20.91 (+7%)
2-Year Target $22.44 (+15%)
3-Year Target $24.08 (+24%)
3-Yr Target (if PE normalizes) (PE: 15→13) PE COMPRESSION $19.46 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 21.8, Growth: 25.8%) $54.67 (+181%)
Base: (SPY PE: 15.5, Growth: 25.8%) $38.82 (+99%)
Bear: (PE: 12.5, Growth: 25.8%) $31.37 (+61%)
📈 Valuation based on Current Earnings
Forward PE: 14.73 | Forward EPS (Implied): $1.32
Bull Case $23.53 (+21%)
Analyst growth 15.0%, PE expands to 15.5
Base Case $19.49 (0%)
Market implied 0.0%, PE stable at 14.7
Bear Case $14.91 (-24%)
Severe decline -15.0%, PE contracts to 13.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: July 03, 2026 10:28 PM ET
Data refreshes hourly during market hours. Next update: 11:28 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Shigeyuki Hamamatsu SELL 10790 shares 2026-03-06

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Advanced OOMA Option Strategies

Professional options setups generated by AI based on today's OOMA price and gamma walls.

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