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. Here are the highlights:

Top 20% Value

Top 19% Financials

Top 18% Momentum, Sentiment & AI Factor

Top 0.7% Growth

Top 0.7% Overall…more like A+

You will note strength across 6 of the 7 Component Grades. That 7th is Safety which is not that bad at top 42%. 

And really, with growth stocks like this one, you don’t want too much Safety as it usually limits the upside potential.

Looking out to next year they are expected to earn $1.49 per share which is a forward PE of only 13.8 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 gained over 300% in less than a year. 

Perhaps it's finally time you became a Zen Investor member. And today you can do that while saving up to 40% on your membership. Just click below to… 

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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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