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nCino (NCNO) Soars 6.7%: Is Further Upside Left in the Stock?

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nCino (NCNO - Free Report) shares ended the last trading session 6.7% higher at $23.64. 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 27.4% loss over the past four weeks.

The upswing in nCino’s share price can be attributed to its expanding clientele. nCino’s solutions are now being used by a number of banks and financial enterprises including johnson Financial Group and Bank of New Zealand.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +44.4%. Revenues are expected to be $104.47 million, up 39.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For nCino, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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. 8x8 (EGHT - Free Report) , another stock in the same industry, closed the last trading session 4.4% lower at $4.76. EGHT has returned -22.4% in the past month.

For 8x8, the consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $0.08. This represents a change of +60% from what the company reported a year ago. 8x8 currently has a Zacks Rank of #2 (Buy).


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