OOMA Inc. (OOMA): Opportunity is CALLING for this Top Stock

My current game plan calls for more small caps...and more Risk On (as in growth). OOMA Inc. (OOMA) checks both those boxes as a thriving small cap technology stock focused on providing upgraded phone systems to small and medium sized businesses.

Plus it is 1 of the top 7 stocks appearing in our Zen Strategies Technology portfolio. So you know that’s a good place to start to find excellent stocks with an impressive Zen Ratings profile. 

Taking it from the top, small and mid sized businesses are finally ditching their ancient desk phones and moving to cloud based communications systems. OOMA has built a platform that combines phone service, video conferencing and collaboration tools into one simple package specifically designed and priced for these smaller businesses.

This is a lifetime value play as they get strong recurring revenue from clients. Plus switching costs are high leading to great longevity and growth. 

This thesis proved out once again in their most recent earnings beat. In fact, they have now gone over 20 earnings reports without a miss. 

Even more important, analysts raised estimates after the last beat now pointing to 24% expected earnings growth in the year ahead. 

As per usual, this stock scores extremely well with the Zen Ratings with no component grade lower than top 33% (Financials). Here are the highlights:

Top 25% Value

Top 7% Sentiment 

Top 6% AI Factor

Top 0.5% Growth (special in this category!)

Top 0.9% Overall…more like A+

In my book the top 25% for value is based upon the picture of the past. As they keep retaining new customers...and adding new ones, then margins will go higher pushing up earnings growth...making it seem like more and more of a value today.

Looking out to next year they are expected to earn $1.48 per share which is a forward PE of only 12.5 when 20 to 25 would be quite reasonable given the projected growth.

So, I sense shares have the potential to double as we look out 12 to 24 months. That gives us good reason to “dial up” OOMA shares into our portfolio.

What To Do Next?

OOMA Inc. (OOMA) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each stock was selected by harnessing the power of the Zen Ratings along with my greater than 40 years of successful investing experience. 

This dynamic combination has me pinpointing stocks with the unique opportunity to double or more in the next 1-2 years.

This is not a hollow claim. 

In the past year alone we have enjoyed 5 stocks eclipsing the 100% winner mark. The most impressive of which is now up over 300% and counting. 

Plus on Wednesday June 3rd I will be adding 2 brand new buy recommendations. 

Perhaps it's finally time you became a Zen Investor member. 

Especially as we are about to raise the price. So get in at the original rate and get your hands on these top stock selections. 

Discover the Zen Investor & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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