Down 31.7% in 4 Weeks, Here's Why Domo (DOMO) Looks Ripe for a Turnaround

Core Viewpoint - Domo (DOMO) has experienced a significant decline of 31.7% over the past four weeks, but it is now in oversold territory, suggesting a potential for a turnaround as analysts expect 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 oversold conditions [2]. - Domo's current RSI reading is 24.27, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. - The RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding Domo's earnings estimates, with a 2.6% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7]. - 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 favorable outlook for a near-term turnaround [8].