Small cap, big growth. That describes financial software maker nCino. On Tuesday, nCino stock got an important rating upgrade as its Relative Strength Rating jumped from 69 to 80. It passed a milestone along the way. Research shows that the best stocks tend to have an 80 or higher RS Rating in the early stages of their biggest moves. NCino just joined that elite group.
NCino makes software for banks and other financial institutions. It was founded by a group of bankers and emerged as an independent company in late 2011. It's expanded globally and serves more than 1,850 financial institutions in North America, Europe, Australia and the Asia/Pacific region.
NCino Stock Working On Flat Base
NCino is trying to complete a flat base with a 33.63 buy point. See if it can break out in heavy trade. Its shares fell to a 19.58 low on March 13 then began rising. On Tuesday nCino closed at 31.79, up 0.4% for the day and up 62% from the March low.
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NCino stock also has an 81 Earnings Per Share Rating and a strong 87 Composite Rating, putting it in the top 13% of stocks overall. Its Accumulation/Distribution Rating is C-, meaning institutions are selling slightly more shares than buying.
200%-Plus Profit Growth Last Quarter
Last quarter nCino reported a 217% increase in EPS to 7 cents per share, reversing from a 6-cent loss the same quarter a year ago. Last quarter's EPS increase came on the heels of a 144% rise in EPS the prior quarter. Revenue last quarter rose 21% to $113.7 million. The prior three quarters its revenue rose 50%, 50% and then 45%.
NCino stock earns the No. 8 rank among its peers in the 41-stock Computer Software-Financial industry group. Intuit and AvidXchange are also among the group's highest-rated stocks. The financial software group as a whole is ranked a strong No. 30 on IBD's list of 197 industries.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The proprietary IBD Relative Strength Rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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