Domo (DOMO) Soars 9.0%: Is Further Upside Left in the Stock?
Domo DOMO shares soared 9% in the last trading session to close at $10.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% loss over the past four weeks.
Domo is riding on an expanding clientele, driven by a strong demand for AI-powered software solutions. The Domo platform allows customers to increase their productivity and efficiency and deliver better business outcomes. This is driving adoption, thereby boosting top-line growth.
This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $79.46 million, down 0.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Domo, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DOMO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Domo is a member of the Zacks Internet - Software industry. One other stock in the same industry, Digital Turbine APPS, finished the last trading session 0.5% lower at $5.71. APPS has returned -17.7% over the past month.
For Digital Turbine , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of -37.9% from what the company reported a year ago. Digital Turbine currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Domo, Inc. (DOMO) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
