Nu Holdings Ltd. (NU) closed at $15.18 in the latest trading session, marking a +1.81% move from the prior day. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the company had lost 6.17% lagged the Finance sector's loss of 1.05% and the S&P 500's gain of 1.02%.
Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company is predicted to post an EPS of $0.15, indicating a 25% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.87 billion, reflecting a 31.66% rise from the equivalent quarter last year.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Nu Holdings Ltd. boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Nu Holdings Ltd. is holding a Forward P/E ratio of 26.78. This indicates a premium in contrast to its industry's Forward P/E of 10.5.
We can also see that NU currently has a PEG ratio of 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Foreign industry had an average PEG ratio of 0.98 as trading concluded yesterday.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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