Yahoo Finance Ooma (OOMA) Dips More Than Broader Markets: What You Should Know
Ooma (OOMA) closed the most recent trading day at $17.76, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 1.39%, while the tech-heavy Nasdaq added 0.53%.
Coming into today, shares of the internet phone service provider had gained 36.51% in the past month. In that same time, the Computer and Technology sector gained 5.97%, while the S&P 500 lost 1.79%.
Investors will be hoping for strength from OOMA as it approaches its next earnings release. The company is expected to report EPS of $0.07, up 275% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $40.17 million, up 7.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.25 per share and revenue of $162.04 million. These totals would mark changes of +933.33% and +6.89%, respectively, from last year.
Any recent changes to analyst estimates for OOMA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. OOMA is currently a Zacks Rank #2 (Buy).
Looking at its valuation, OOMA is holding a Forward P/E ratio of 72.08. This valuation marks a premium compared to its industry's average Forward P/E of 26.74.
Investors should also note that OOMA has a PEG ratio of 1.51 right now. 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 2.75 at yesterday's closing price.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.
To follow OOMA in the coming trading sessions, be sure to utilize Zacks.com.
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