5 Cheap Small Cap Stocks to Buy Now

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1. nCino, Inc. (NASDAQ:NCNO)

Number of Hedge Fund Holders: 40

nCino, Inc. (NASDAQ:NCNO) is one of the best cheap small cap stocks to buy now. nCino, Inc. (NASDAQ:NCNO) received a rating update from JPMorgan on June 22. The firm lifted the price target on the stock to $17 from $16 and maintained a Neutral rating on the shares, stating that the firm rolled forward its price targets to December 2027 from December 2026 across its banking technology and digital banking coverage. JPMorgan told investors in a research note that it holds a constructive view on the group, and stated that “AI-defensibility concerns appear overstated relative to the entrenched workflow, data, and compliance moats these vendors have built.”

The firm further told investors that its highest conviction ideas remain fiscal Q2 and Alkami, adding that the companies operate in a consolidated, duopolistic digital banking market featuring strong retention, long contract durations, and paths to free cash flow expansion. JPMorgan added that Alkami screens as its “high-conviction takeout candidate” amid activist pressure.

nCino, Inc. (NASDAQ:NCNO) provides cloud-based software applications for financial institutions in the United States and internationally.

While we acknowledge the potential of NCNO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NCNO and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

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