3 Underfollowed Stocks on the Move Now (OLO, PLMR, EXEL)

Zacks reports that Olo (OLO), Palomar Holdings (PLMR), and Exelixis (EXEL) are underfollowed stocks exhibiting strong fundamentals, favorable earnings revisions, and reasonable valuations. Olo, a SaaS provider for restaurants, is experiencing a turnaround with revenue expected to climb ~18-19% in the next two years and earnings forecast to rise ~18-41%. Palomar Holdings, a specialty insurer, is projected to grow EPS by ~17-40% this year and next, with revenue surging ~26-42%, while Exelixis, a biotech firm, anticipates earnings growth of 21.2% annually over the next three to five years and has seen recent upward revisions to FY25/26 EPS estimates.

Analysis

The analysis highlights three underfollowed equities—Olo Inc. (OLO), Palomar Holdings Inc. (PLMR), and Exelixis Inc. (EXEL)—each presenting a compelling investment case based on strong price momentum, high Zacks Ranks, reasonable valuations, and robust growth forecasts. Olo, a SaaS provider for the restaurant industry, is identified as a turnaround story achieving profitability; its revenue is projected to grow 19.1% this year and 17.6% next, with earnings forecast to rise 41% and 18.3% respectively, while trading at a 23.6x forward P/E. Technically, OLO is consolidating in a bull flag pattern, with a potential breakout above $8.95. Palomar Holdings, a specialty insurer, benefits from strong industry dynamics and is experiencing significant growth, with EPS expected to increase by 39.9% this year and 17% in 2025, and revenue surging 42.3% and 26.4% in the same periods. Despite a 180% stock gain in 18 months, PLMR trades at a modest 18.8x forward P/E, and its current pullback is viewed as a potential buying opportunity. Exelixis, a profitable biotechnology company, is noted for its flagship cancer treatment Cabometyx and strong oncology pipeline. Analysts project 21.2% annual earnings growth over the next three to five years, with recent upward revisions to FY25 (up 13%) and FY26 (up 7.1%) EPS estimates. EXEL trades at a 16.5x forward P/E with an attractive PEG ratio of 0.78, and technically, it is forming a bullish continuation pattern with a potential breakout above $43.70. All three companies exhibit improving analyst expectations and are presented as non-consensus opportunities with strong fundamentals.

Key Decisions for Investors

• Investors seeking growth at a reasonable price (GARP) might consider Exelixis (EXEL), given its 0.78 PEG ratio, consistent profitability in the biotech sector, and potential technical breakout.
• For those interested in turnaround situations with strong SaaS fundamentals, Olo (OLO) warrants attention, particularly monitoring for a breakout above the $8.95 resistance level, supported by its positive earnings inflection and revenue growth.
• Palomar Holdings (PLMR) offers exposure to the resilient insurance sector with significant top and bottom-line growth; its current share price pullback following substantial gains could represent an attractive entry point for investors comfortable with its specialty insurance risk profile.
• Given the shared characteristics of strong momentum, favorable earnings revisions, and reasonable valuations across diverse industries, investors could consider these names for portfolio diversification if they align with individual risk tolerance and investment horizons, paying close attention to the specified technical levels for entry or position sizing.