In the latest close session, Nu Holdings Ltd. (NU) was down 1.44% at $15.78. The stock's performance was behind the S&P 500's daily loss of 0.5%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.5%.
Shares of the company have appreciated by 9.36% over the course of the past month, outperforming the Finance sector's gain of 1.4%, and the S&P 500's gain of 2.74%.
Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.15, showcasing a 25% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.87 billion, up 31.66% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.56 per share and a revenue of $14.95 billion, representing changes of +24.44% and +29.77%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Nu Holdings Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.6% higher. Right now, Nu Holdings Ltd. possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Nu Holdings Ltd. is holding a Forward P/E ratio of 28.76. For comparison, its industry has an average Forward P/E of 10.54, which means Nu Holdings Ltd. is trading at a premium to the group.
One should further note that NU currently holds a PEG ratio of 0.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Banks - Foreign industry stood at 1.02 at the close of the market yesterday.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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