Ooma (OOMA) Stock: Buy, Sell, or Hold?
OOMA - Ooma, Inc. Common Stock
$19.77
0.08 (0.41%)
▲
5d:
+0.25%
30d:
-9.81%
90d:
-4.86%
BUY
HIGH Confidence
Analysis Updated: Oct 23, 2026 12:00 AM ET
Earnings: Dec 14, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: OOMA shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
✅ BUY SIGNAL: OOMA shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$34.11
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$21.18
6.6% 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 13.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: OOMA is currently trading at $19.77, which is considered oversold relative to its 30-day fair value range of $19.79 to $21.98. From a valuation perspective, the stock is trading at a premium (Forward PE: 15.7) compared to its historical average (13.9). At these levels, the market is pricing in 4.1% 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 uptrend. The price is currently testing key support at $19.28. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: OOMA scores 81/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. 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 (+35.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, OOMA is in a uptrend. The price is currently testing key support at $19.28. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: OOMA scores 81/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. 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 (+35.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$19.79 -
$21.98
Company Quality Score
69/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
93.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Options cheap (IV 0th percentile)
- BULLISH: Strong technical setup (81/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 35.6% below Wall St target ($26.80)
- NEUTRAL: Market pricing in 4.1% annual earnings growth - fairly valued
- BULLISH: Bottoming setup score 81/100 — corrected, stabilizing, and turning up
Trading Range Analysis
30-Day Trading Range
$19.79 -
$21.98
Current vs Trading Range
OVERSOLD
Expected Move (7 Days)
±$1.34
(6.8%)
Support & Resistance Levels
Support Level
$19.28
Resistance Level
$20.79
Current Trend
Uptrend
Technical data as of
Oct 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.69
Wall Street Target
$26.80
(+35.6%)
Revenue Growth (YoY)
25.4%
Earnings Growth (YoY)
150.0%
Profit Margin
3.6%
Valuation Premium vs History
+4.1% premium
PE vs Historical
15.7 vs 13.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.1%
(market-implied from PE analysis)
1-Year Target
$20.58
(+4%)
2-Year Target
$21.42
(+8%)
3-Year Target
$22.30
(+13%)
3-Yr Target (if PE normalizes)
(PE: 16→14)
PE COMPRESSION
$19.76
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 25.8%)
$49.85
(+152%)
Base:
(SPY PE: 15.7, Growth: 25.8%)
$39.38
(+99%)
Bear:
(PE: 13.3, Growth: 25.8%)
$33.47
(+69%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (16x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Forward PE: 15.97 | Forward EPS (Implied): $1.24
Bull Case
$23.87
(+21%)
Analyst growth 15.0%, PE expands to 16.8
Base Case
$19.77
(0%)
Market implied 0.0%, PE stable at 16.0
Bear Case
$15.12
(-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.
Share & Embed Analysis
Last updated: October 24, 2026 12:20 PM ET
Data refreshes hourly during market hours. Next update: 1:20 PM
Data refreshes hourly during market hours. Next update: 1:20 PM
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Technical Signals Check
Is OOMA showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
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.