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Here's Why Ooma (OOMA) is a Promising Pick for Investors

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Shares of Ooma, Inc. (OOMA - Free Report) have returned 33.7% in the past six months compared with 30.6% growth of the industry. Currently, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.



This Sunnyvale, CA-based company delivered a trailing four-quarter earnings surprise of 163.7%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 21.7% upward over the past 30 days.

Growth Drivers

Ooma creates powerful connected experiences for businesses and consumers, delivered from its smart cloud-based SaaS platform. The company continues to benefit from growth in business subscription services. Its innovative smart security solution delivers a range of wireless security sensors.

For businesses, Ooma provides advanced voice and scalable collaboration features. For consumers, Ooma’s residential phone service provides PureVoice HD voice quality, advanced functionality and integration with mobile devices. The company offers Direct Routing for Microsoft Teams through a global data network.

Ooma expanded its business services to address larger customers and has started rolling out to new countries in Europe. Positive market trends, along with Ooma’s strategy to serve small and large businesses with unique solutions, are expected to drive growth.

Other Key Choices

Some other top-ranked stocks in the broader industry are Aviat Networks (AVNW - Free Report) , Plantronics and Ubiquiti (UI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.

Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

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