Domo (DOMO) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Domo (DOMO) - Domo currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Domo's shares have increased by 9.52% over the past week, outperforming the Zacks Internet - Software industry, which rose by 3.98% [5] - Over the last month, Domo's stock price has surged by 48.22%, significantly higher than the industry's 4.78% [5] - In the past quarter, Domo's shares rose by 40.54%, and over the last year, they increased by 52.17%, while the S&P 500 saw movements of -2.55% and 11.45%, respectively [6] Trading Volume - Domo's average 20-day trading volume is 472,751 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, one earnings estimate for Domo has increased, while none have decreased, leading to a consensus estimate improvement from -$0.35 to -$0.31 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, Domo is identified as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]