OOMA Stock Analysis: Buy, Sell, or Hold?
OOMA - Ooma, Inc. Common Stock
$21.24
-0.78 (-3.54%)
▼
5d:
+5.83%
30d:
+6.09%
90d:
+11.09%
HOLD
MODERATE Confidence
Analysis Updated: Aug 24, 2026 12:00 AM ET
Earnings: Aug 26, 2026
1d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: OOMA trades at premium valuation expecting 10.1% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: OOMA trades at premium valuation expecting 10.1% growth. Hold existing positions but don't chase. Wait for better entry.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$32.14
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$19.96
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 13.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: OOMA is currently trading at $21.24, which is considered fair relative to its 30-day fair value range of $20.32 to $21.69. From a valuation perspective, the stock is trading at a premium (Forward PE: 17.5) compared to its historical average (13.1). At these levels, the market is pricing in 10.1% 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 strong uptrend. Immediate support is located at $19.72, while resistance sits at $22.30. Short-term momentum is weak, with the stock down 3.5% recently.
Market Sentiment: The stock scores a mixed 57/100 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. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, OOMA is in a strong uptrend. Immediate support is located at $19.72, while resistance sits at $22.30. Short-term momentum is weak, with the stock down 3.5% recently.
Market Sentiment: The stock scores a mixed 57/100 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. 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
FAIR
Historical Trading Range
$20.32 -
$21.69
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
69.2%
Protect Your Profits
Holding OOMA? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- NEUTRAL: Price in fair range
- BULLISH: Options cheap (IV 0th percentile)
- NEUTRAL: Mixed technical signals (57/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.5%)
- NEUTRAL: Near Wall St target ($23.00)
- NEUTRAL: Trading at premium valuation - market expects 10.1% growth which is achievable
- NEUTRAL: Bottoming setup forming (57/100) — watch for confirmation
Trading Range Analysis
30-Day Trading Range
$20.32 -
$21.69
Current vs Trading Range
FAIR
Expected Move (7 Days)
±$1.75
(8.2%)
Support & Resistance Levels
Support Level
$19.72
Resistance Level
$22.30
Current Trend
Strong Uptrend
Technical data as of
Aug 24, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.48
Wall Street Target
$23.00
(+4.5%)
Revenue Growth (YoY)
24.8%
Profit Margin
3.2%
Valuation Premium vs History
+10.1% premium
PE vs Historical
17.5 vs 13.1
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+10.1%
(market-implied from PE analysis)
1-Year Target
$24.24
(+10%)
2-Year Target
$26.69
(+21%)
3-Year Target
$29.39
(+34%)
3-Yr Target (if PE normalizes)
(PE: 17→13)
PE COMPRESSION
$22.03
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 25.8%)
$50.37
(+129%)
Base:
(SPY PE: 17.5, Growth: 25.8%)
$43.86
(+99%)
Bear:
(PE: 13.1, Growth: 25.8%)
$32.88
(+49%)
📈
Valuation based on Current Earnings
Forward PE: 15.20 | Forward EPS (Implied): $1.45
Bull Case
$26.59
(+21%)
Analyst growth 15.0%, PE expands to 16.0
Base Case
$22.02
(0%)
Market implied 0.0%, PE stable at 15.2
Bear Case
$16.85
(-24%)
Severe decline -15.0%, PE contracts to 13.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 24, 2026 3:54 PM ET
Data refreshes hourly during market hours. Next update: 4:54 PM
Data refreshes hourly during market hours. Next update: 4:54 PM
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Technical Signals Check
Is OOMA showing a specific setup today?
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.
