Shares of Domo (DOMO) have been strong performers lately, with the stock up 31.1% over the past month. The stock hit a new 52-week high of $17.9 in the previous session. Domo has gained 150.7% since the start of the year compared to the 21.4% gain for the Zacks Computer and Technology sector and the 26% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 27, 2025, Domo reported EPS of $0.02 versus consensus estimate of -$0.05.
Valuation Metrics
Though Domo has recently hit a 52-week high, what is next for Domo? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Domo has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Domo currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Domo passes the test. Thus, it seems as though Domo shares could have a bit more room to run in the near term.
How Does DOMO Stack Up to the Competition?
Shares of DOMO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NCR Atleos Corporation (NATL). NATL has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of D.
Earnings were strong last quarter. NCR Atleos Corporation beat our consensus estimate by 9.41%, and for the current fiscal year, NATL is expected to post earnings of $3.98 per share on revenue of $4.36 billion.
Shares of NCR Atleos Corporation have gained 5% over the past month, and currently trade at a forward P/E of 9.91X and a P/CF of 5.82X.
The Internet - Software industry is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DOMO and NATL, even beyond their own solid fundamental situation.
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Domo, Inc. (DOMO): Free Stock Analysis Report NCR Atleos Corporation (NATL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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