The market is threatening the forming of a short-term top here. We’ve seen some big spikes in several stocks, but that’s not what’s making things feel so “toppy.” Rather, it’s the major intraday reversals which were evident in so many stocks and indexes. A ton of names took out all-time highs then spent the rest of the day breaking down below weekly lows. Not the sort of thing you want to see when you are on the bullish side of the equation.

This has increased the risk of more downside action in the stock market. Investors looking to take advantage of these dips should look for stocks that have the strongest earnings trends. Once the downside action eases, it’s often stocks with the strongest earnings which right the ship the fastest.

One stock with a strong underlying earnings trend is today’s Bull of the Day, nCino (NCNO). nCino is a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem.

The stock is currently a Zacks Rank #1 (Strong Buy) in the Internet – Software industry which ranks in the Top 13% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is six analysts have increased their earnings estimates for the current year while four have done so for next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from 67 cents to 72 cents over the last sixty days, while next year’s number is up from 85 cents to 87 cents.

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That means that current year earnings growth is slated to come in at 44% this year and 21% next year. That’s on revenue growth forecasts of 13% this year and 14% next year. The earnings growth number is better than the industry average of 25% in the current year, as well as the S&P 500’s 33%.

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nCino Inc. (NCNO) : Free Stock Analysis Report

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