Bears are Losing Control Over nCino (NCNO), Here's Why It's a 'Buy' Now

Stock Performance and Technical Analysis - Shares of nCino (NCNO) have lost 8.3% over the past four weeks, but a hammer chart pattern formed in its last trading session, indicating potential support and a possible trend reversal [1] - The hammer pattern is a technical indicator suggesting a nearing bottom with subsiding selling pressure, often signaling a potential trend reversal when it occurs at the bottom of a downtrend [2][4] - The hammer pattern is characterized by a small candle body with a long lower wick, indicating buying interest after a new low, and can occur on any timeframe [3][4] - While the hammer pattern is a bullish indicator, its strength depends on its placement on the chart and should be used alongside other bullish indicators [5] Fundamental Analysis and Earnings Estimates - Wall Street analysts have shown strong agreement in raising earnings estimates for nCino, enhancing the company's prospects for a trend reversal [2] - Over the last 30 days, the consensus EPS estimate for the current year has increased by 17.2%, indicating analysts' confidence in improved earnings [7] - nCino currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises [8] - Stocks with a Zacks Rank 1 or 2 typically outperform the market, and the rank serves as a reliable timing indicator for identifying improving company prospects [8]