OLO INC - CLASS A (NYSE:OLO): A High-Growth Stock Meeting Minervini's Trend Template

OLO INC - CLASS A (NYSE:OLO) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, which provides a cloud-based commerce platform for restaurant brands, demonstrates strong technical and fundamental characteristics that make it worth a closer look.

Why OLO Fits Minervini’s Trend Template

Minervini’s Trend Template focuses on stocks exhibiting strong uptrends with key technical confirmations. OLO meets these criteria:

• Price Above Key Moving Averages:

  • Current price ($8.85) is above the 50-day ($6.86), 150-day ($6.84), and 200-day ($6.39) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.

• Strong Relative Strength:

  • OLO’s relative strength (CRS) is 96.7, meaning it outperforms nearly 97% of all stocks.

• Price Near 52-Week High:

  • The stock is trading within 10% of its 52-week high ($9.78) and is up 91.97% over the past year.

• Positive Trend Confirmation:

  • Both short-term and long-term trends are positive, with rising moving averages across all timeframes.

High-Growth Fundamentals

Beyond technical strength, OLO shows compelling growth metrics:

• Earnings Growth:

  • EPS grew 33.3% year-over-year (TTM), with recent quarterly growth accelerating to 40%.
  • Analysts have raised next-year EPS estimates by 6.86% over the past three months.

• Revenue Momentum:

  • Revenue increased 23.3% (TTM), with consistent quarterly growth (19.1% last quarter).
  • The company has beaten revenue estimates in all of the last four quarters.

• Free Cash Flow Surge:

  • Free cash flow per share surged 3,381.7% year-over-year, signaling strong operational efficiency.

• Profitability Improvement:

  • Profit margins expanded to 2.24% in the latest quarter, up from negative figures in prior periods.

Technical Outlook

According to ChartMill’s technical report, OLO scores a perfect 10 out of 10 for technical health, supported by:

• Strong uptrends in both short and long-term timeframes.
• High relative strength within the software industry (outperforming 92% of peers).
• Trading near the upper end of its 52-week range, in line with the broader market.

However, the setup rating (3/10) suggests the stock may need a consolidation phase before presenting an optimal entry point.

For a deeper technical analysis, review the full ChartMill report.

Our High Growth Momentum + Trend Template screener lists more high-growth stocks meeting these criteria.

Disclaimer

This is not investing advice. The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.