nCino, Inc. (NASDAQ:NCNO) is one of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts. Broader Headwinds in Software Group Drive Analyst Skepticism Toward nCino (NCNO) The overall sentiment surrounding nCino, Inc. (NASDAQ:NCNO) remains soft, as analysts update their models following a sluggish share price performance in the past year amid broader headwinds in the software group. JPMorgan sees the accelerated expansion of AI as a concern. The growing adoption of AI is expe ...

Core Viewpoint - nCino, Inc. is set to report its financial results for the fourth quarter of fiscal year 2026 on March 31, 2026, and will host a conference call to discuss these results [1][2]. Group 1: Financial Results Announcement - nCino will announce its fourth quarter financial results after market close on March 31, 2026 [1]. - A conference call and webcast will take place on the same day at 4:30 p.m. ET to discuss the financial results [2]. Group 2: Company Overview - nCino is a leading provider of intelligent banking solutions, aimed at helping financial institutions digitize and improve their business processes [3]. - The company serves over 2,700 customers globally, including community banks, credit unions, independent mortgage banks, and major financial entities [3]. - nCino integrates artificial intelligence and actionable insights into its platform to enhance decision-making, risk management, and customer satisfaction [3].

Core Viewpoint - nCino (NCNO) has experienced a significant downtrend, with a 13.4% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - The current RSI for NCNO is 28.21, suggesting that the heavy selling pressure may be exhausting, indicating a possible price rebound [5]. - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify potential reversal points, making it a useful tool for investors seeking entry opportunities [3]. Group 2: Fundamental Analysis - Analysts covering NCNO have shown strong consensus in raising earnings estimates, with a 0.7% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - NCNO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating strong potential for a near-term turnaround [8].

Core Viewpoint - nCino (NCNO) has experienced significant selling pressure, resulting in a 16.6% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2] - The current RSI for NCNO is 28.38, suggesting that the heavy selling may be nearing exhaustion, indicating a potential rebound [5] Group 2: Fundamental Indicators - Analysts have raised earnings estimates for NCNO by 0.7% over the last 30 days, which typically correlates with price appreciation [7] - NCNO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

Core Insights - In 2025, businesses experienced rapid advancements in artificial intelligence (AI), impacting their growth trajectories, while concerns about an AI bubble and macroeconomic challenges dampened stock performances. However, beaten-down stocks are expected to benefit from the January Effect, presenting opportunities for investors to acquire fundamentally strong stocks with promising earnings growth prospects [1][10]. AI Industry Trends - The integration and adoption of AI across various sectors are anticipated to be significant growth catalysts, enhancing operational efficiency, optimizing supply chains, and improving decision-making processes. Companies investing in AI-driven analytics and automated customer engagement are likely to see improved margins and accelerated growth [3][10]. - The global AI infrastructure market is projected to reach $758 billion by 2029, driven by strong demand for compute and storage hardware. Global AI spending is expected to exceed $2 trillion in 2026, up from an estimated $1.5 trillion in 2025, indicating robust investment momentum [4]. Company-Specific Insights - **nCino**: This company is expected to drive demand in 2026 with its AI-powered solutions. The Zacks Consensus Estimate for nCino's fiscal 2026 earnings is 89 cents per share, reflecting a 36.92% year-over-year increase, despite a 21.7% decline in stock value over the past year [5][7]. - **Global-e Online**: Benefiting from AI integration, the company is enhancing efficiency and customer experience. The Zacks Consensus Estimate for its fiscal 2026 earnings is 94 cents per share, indicating a 177.06% year-over-year increase, although shares have dropped 27.4% in the last year [8][11]. - **GitLab**: This company is experiencing strong demand for its AI-native DevSecOps platform. The Zacks Consensus Estimate for GitLab's fiscal 2026 earnings is 88 cents per share, showing an 18.92% year-over-year increase, despite a 33% decline in stock value over the past year [12][13]. - **Samsara**: The company has introduced advanced AI capabilities, with a Zacks Consensus Estimate for fiscal 2026 earnings at 50 cents per share, reflecting a 92.31% year-over-year increase, despite a 16.9% decline in stock value over the past year [14][15].

Core Viewpoint - nCino (NCNO) has shown a recent price increase of 6.4% and has a mean price target of $34.73, indicating a potential upside of 32.1% from its current price of $26.29 [1] Price Targets and Analyst Estimates - The mean estimate consists of 15 short-term price targets with a standard deviation of $4.08, suggesting variability in analyst predictions. The lowest estimate is $27.00 (2.7% increase), while the highest is $41.00 (56% increase) [2] - Analysts' price targets can be misleading, as empirical research indicates that they often do not accurately predict stock price movements [7][10] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have recently revised their earnings estimates for nCino upward, with a 55.1% increase in the Zacks Consensus Estimate for the current year, reflecting strong optimism about the company's earnings prospects [11][12] - nCino holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, which supports the potential for stock upside [13] Conclusion on Price Movement - While the consensus price target may not be a reliable measure of potential gains, the direction indicated by these targets appears to be a useful guide for investors [14]

Core Viewpoint - nCino (NCNO) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2] Earnings Estimates - Analysts' optimism regarding nCino's earnings prospects is driving higher estimates, which is expected to positively impact the stock price [2] - The current quarter's earnings estimate is projected at $0.21 per share, reflecting a 75.0% increase from the previous year [5] - For the full year, the earnings estimate stands at $0.89 per share, indicating a year-over-year growth of 36.9% [6] Estimate Revisions - Over the past 30 days, five analysts have raised their estimates for nCino, with no negative revisions, leading to a 30% increase in the Zacks Consensus Estimate for the current quarter [5] - The trend of positive estimate revisions for the current year is also encouraging, with five estimates moving higher and no negative revisions [6] Zacks Rank - nCino has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors [7] - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [7] Stock Performance - nCino shares have increased by 5.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [8]

Core Insights - Insight Holdings Group has fully exited its position in nCino, selling approximately 4.5 million shares for an estimated value of $124.7 million [2][3][6] - nCino's stock has underperformed, with a 29% decline over the past year, contrasting with a 12% increase in the S&P 500 during the same period [4][10] Company Overview - nCino is a leading provider of cloud-based banking software, focusing on digitizing and automating banking processes such as client onboarding and loan management [5][8] - The company reported a total revenue of $586.5 million and a net income of -$21.8 million for the trailing twelve months [5] - nCino's revenue grew by 10% year over year to $152.2 million, driven by an 11% increase in subscription revenue [9] Financial Performance - The company's GAAP operating margin turned positive at 8%, while the non-GAAP operating margin expanded to 26%, an increase of approximately 600 basis points from the previous year [9] - nCino generated positive free cash flow and completed a $100 million share repurchase program, indicating improved financial discipline [9] Market Position - nCino's previous position represented 5.2% of Insight Holdings Group's assets under management (AUM) [3][6] - Following the exit, the fund's reportable U.S. equity assets decreased by 32% quarter over quarter, reflecting a broader portfolio downsizing [3]

Core Viewpoint - nCino (NCNO) shows potential for significant upside, with a mean price target of $34.8 indicating a 34.3% increase from the current price of $25.92 [1] Price Targets and Analyst Estimates - The mean estimate consists of 15 short-term price targets with a standard deviation of $4.02, suggesting variability in analyst predictions [2] - The lowest estimate is $27.00, indicating a 4.2% increase, while the highest estimate is $41.00, suggesting a potential surge of 58.2% [2] - A low standard deviation indicates a high degree of agreement among analysts regarding price movement [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about nCino's earnings prospects, with a strong consensus on higher EPS estimates [11] - Over the last 30 days, five estimates have been revised upward, leading to a 55.1% increase in the Zacks Consensus Estimate [12] - nCino holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Targets - While consensus price targets may not be reliable indicators of the extent of potential gains, they can provide a directional guide for price movement [14]

Core Insights - The Barclays TMT Conference is being held, focusing on technology, media, and telecommunications sectors [1] - Greg Orenstein, CFO of nCino, is participating in a discussion about the company's performance and future outlook [2] Company Overview - nCino's recent quarterly performance will be a key topic of discussion during the conference [2] - The session aims to be interactive, encouraging audience participation and questions [2]