Domo (DOMO) Loses 7.8% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Domo (DOMO) is experiencing significant selling pressure, with a 7.8% decline over the past four weeks, but is positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - Domo's current RSI reading is 29.92, suggesting that the heavy selling pressure may be exhausting, indicating a possible reversal in the stock's trend [5]. Group 2: Fundamental Indicators - Analysts covering Domo have shown strong agreement in raising earnings estimates for the current year, resulting in a 4.4% increase in the consensus EPS estimate over the last 30 days, which often correlates with near-term price appreciation [6]. - Domo holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7].