The most recent trading session ended with Nu Holdings Ltd. (NU) standing at $10.59, reflecting a +1.53% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.67% for the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the company witnessed a loss of 0.29% over the previous month, beating the performance of the Finance sector with its loss of 3.32% and the S&P 500's loss of 5.28%.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company is predicted to post an EPS of $0.11, indicating a 22.22% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.44 billion, indicating a 25.85% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $15.39 billion, which would represent changes of +22.22% and +33.67%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Nu Holdings Ltd. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 19.08. For comparison, its industry has an average Forward P/E of 9.29, which means Nu Holdings Ltd. is trading at a premium to the group.
It's also important to note that NU currently trades at a PEG ratio of 0.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Banks - Foreign industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nu Holdings Ltd. (NU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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