Ooma (OOMA) closed at $15.84 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.27%.
Prior to today's trading, shares of the internet phone service provider had gained 3.23% over the past month. This has lagged the Computer and Technology sector's gain of 7.86% and the S&P 500's gain of 7.76% in that time.
Investors will be hoping for strength from OOMA as it approaches its next earnings release. On that day, OOMA is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 275%. Our most recent consensus estimate is calling for quarterly revenue of $40.17 million, up 7.57% from the year-ago period.
OOMA's full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $162.04 million. These results would represent year-over-year changes of +933.33% and +6.89%, respectively.
Investors should also note any recent changes to analyst estimates for OOMA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. OOMA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, OOMA is currently trading at a Forward P/E ratio of 63.96. For comparison, its industry has an average Forward P/E of 29.06, which means OOMA is trading at a premium to the group.
Meanwhile, OOMA's PEG ratio is currently 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Communication - Components was holding an average PEG ratio of 2.72 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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