Ooma, Inc. ( OOMA Quick Quote OOMA - Free Report) have returned 23.8% in the past year against 4.4% decline of the industry. Currently, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B. The Sunnyvale, CA-based communications solution provider delivered a trailing four-quarter positive earnings surprise of 238.9%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 44% upward over the past 30 days. The company has a long-term (three to five years) earnings growth expectation of 47.7% compared with the industry’s 12%. Business Drivers
Ooma creates connected experiences for businesses and consumers, delivered from its smart cloud-based SaaS platform. The company is benefiting from the growing market traction of its business and residential services. It aims to bring a unique value proposition to its business customers with Ooma Connect and Ooma Wi-Fi.
In August, the company launched Ooma Wi-Fi, a service for its Office cloud-based phone service customers that takes the complexity out of wireless networking for small and medium-sized businesses. Ooma Wi-Fi has been powered in partnership with Extreme Networks ( EXTR Quick Quote EXTR - Free Report) , a leader in cloud-managed networking infrastructure. Moreover, Ooma introduced a selection of four Wi-Fi-enabled phones for the Ooma Office, giving businesses the flexibility to place IP phones wherever they are needed. MTA Solutions, a leading telecommunications provider in Alaska, delivered a new unified communication service under its brand name through Ooma’s highly customizable and scalable private label partner program. Woburn, MA-based Cabot Risk Strategies, an independent insurance broker and corporate benefits manager, has selected the Ooma Office business phone service. The service will keep its team connected in a new hybrid environment where some employees are working from home and others are spending part of their workweek in the office. Outlook
Ooma has several growth drivers in place and enjoys a strong foothold in its served markets. So it is rational to believe that the stock has more upside left. For the third quarter of fiscal 2021, Ooma expects revenues between $41 million and $41.8 million. While non-GAAP net income is estimated in the range of $1.7 million to $2.2 million, non-GAAP earnings per share are likely to be between 7 cents and 9 cents.
Other Key Picks
A couple of other top-ranked stocks in the industry are Vocera Communications, Inc. (
VCRA Quick Quote VCRA - Free Report) and Acacia Communications, Inc. , both carrying a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Vocera delivered a trailing four-quarter positive earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. Acacia pulled off a trailing four-quarter positive earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters. Zacks’ Single Best Pick to Double
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