Ooma (OOMA) Stock: Buy, Sell, or Hold?

OOMA - Ooma, Inc. Common Stock

SERVICES-COMPUTER PROCESSING & DATA PREPARATION
$20.80
0.04 (0.19%) ▲
5d: -4.46%
30d: -7.68%
90d: +5.05%
HOLD
MODERATE Confidence
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Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Aug 26, 2026 0d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: OOMA trades at premium valuation expecting 6.3% growth. Hold existing positions but don't chase. Wait for better entry.
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
$33.62
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$20.87
0.3% Margin of Safety

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 13.7x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: OOMA is currently trading at $20.80, which is considered oversold relative to its 30-day fair value range of $21.37 to $23.05. From a valuation perspective, the stock is trading at a premium (Forward PE: 16.5) compared to its historical average (13.7). At these levels, the market is pricing in 6.3% 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. The price is currently testing key support at $20.29. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: The stock scores a mixed 45/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. 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 $26.80 (+28.8%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position OVERSOLD
Historical Trading Range $21.37 - $23.05
Company Quality Score 58/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 83.5%

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All Signals

  • BULLISH: Price oversold vs 30-day range
  • BULLISH: Options cheap (IV 0th percentile)
  • NEUTRAL: Mixed technical signals (45/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 28.8% below Wall St target ($26.80)
  • NEUTRAL: PE elevated vs history but 6.3% growth expectation is conservative given 150% recent growth
  • NEUTRAL: Bottoming setup forming (45/100) — watch for confirmation

Trading Range Analysis

30-Day Trading Range $21.37 - $23.05
Current vs Trading Range OVERSOLD
Expected Move (7 Days) ±$1.45 (7.0%)

Support & Resistance Levels

Support Level $20.29
Resistance Level $23.30
Current Trend Strong Uptrend
Technical data as of Oct 2, 2026

Fundamental Context

Forward P/E (Next Year Est.) 16.51
Wall Street Target $26.80 (+28.8%)
Revenue Growth (YoY) 25.4%
Earnings Growth (YoY) 150.0%
Profit Margin 3.6%
Valuation Premium vs History +6.3% premium
PE vs Historical 16.5 vs 13.7 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +6.3% (market-implied from PE analysis)
1-Year Target $22.11 (+6%)
2-Year Target $23.50 (+13%)
3-Year Target $24.98 (+20%)
3-Yr Target (if PE normalizes) (PE: 17→14) PE COMPRESSION $20.73 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 20.4, Growth: 25.8%) $51.20 (+146%)
Base: (SPY PE: 16.5, Growth: 25.8%) $41.43 (+99%)
Bear: (PE: 13.7, Growth: 25.8%) $34.39 (+65%)
📈 Valuation based on Current Earnings
Forward PE: 15.97 | Forward EPS (Implied): $1.30
Bull Case $25.12 (+21%)
Analyst growth 15.0%, PE expands to 16.8
Base Case $20.80 (0%)
Market implied 0.0%, PE stable at 16.0
Bear Case $15.91 (-24%)
Severe decline -15.0%, PE contracts to 14.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: October 04, 2026 7:49 AM ET
Data refreshes hourly during market hours. Next update: 8:49 AM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
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Buys
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Sells
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Net
NEUTRAL

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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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