OLO INC - CLASS A (NYSE:OLO): A Strong Contender in High Growth Momentum

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

Technical Strength: Meeting Minervini’s Trend Template

OLO’s stock exhibits several key traits that fit Minervini’s criteria for strong uptrends:

• Price Above Key Moving Averages: The stock is trading above its 50-day ($7.76), 150-day ($7.28), and 200-day ($6.70) moving averages, confirming a bullish trend.
• Rising Moving Averages: Both the 150-day and 200-day moving averages are trending upward, reinforcing long-term strength.
• Relative Strength: With a ChartMill Relative Strength score of 95.63, OLO outperforms nearly 96% of all stocks, a hallmark of market leadership.
• Proximity to 52-Week High: At $8.47, OLO is within 25% of its 52-week high ($9.78) and well above its 52-week low ($4.20), indicating strong momentum.

Fundamental Growth Drivers

Beyond technicals, OLO shows robust growth metrics that appeal to high-growth investors:

• Earnings Growth: EPS grew 33.3% year-over-year (TTM), with quarterly EPS growth accelerating to 40% in the most recent quarter.
• Revenue Expansion: Revenue increased 23.3% (TTM), with consistent double-digit growth over the past three years.
• Positive Revisions: Analysts have raised next-year EPS estimates by 6.86% over the past three months, signaling confidence in future performance.
• Profitability Improvement: The company’s profit margin expanded to 2.24% in the latest quarter, up from negative figures in prior periods.

Technical Report Summary

OLO’s technical analysis report highlights:

• A perfect 10/10 technical rating, reflecting strong price momentum and trend health.
• A setup rating of 8/10, indicating a consolidation phase that could present a buying opportunity.
• Key support levels at $8.46 and $6.30, providing clear risk management points.

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

Our High Growth Momentum + Trend Template screener lists more stocks that fit this strategy.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk tolerance before making investment decisions.