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nCino (NCNO) Surges 5.9%: Is This an Indication of Further Gains?

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nCino (NCNO - Free Report) shares ended the last trading session 5.9% higher at $27.17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 40.4% loss over the past four weeks.

The surge in nCino's price came after the recent news of the company's partnership with South Africa's largest digital bank, Capitec. nCino will assist in building Capitec Bank's business banking loan management system and thus, gain access to 70,000 business banking clients and 17 million retail clients.

This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $91.19 million, up 46.2% 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 nCino, the consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NCNO 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 >>>>

nCino is part of the Zacks Internet - Software industry. Domo (DOMO - Free Report) , another stock in the same industry, closed the last trading session 4% higher at $31.72. DOMO has returned -40.7% in the past month.

For Domo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.40. This represents a change of -53.9% from what the company reported a year ago. Domo currently has a Zacks Rank of #3 (Hold).


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