In the latest trading session, Nu Holdings Ltd. (NU) closed at $15.24, marking a -1.1% move from the previous day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw a decrease of 0.16%.
Shares of the company have depreciated by 5.46% over the course of the past month, underperforming the Finance sector's loss of 1.76%, and the S&P 500's gain of 1.16%.
The investment community will be paying close attention to the earnings performance of Nu Holdings Ltd. in its upcoming release. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.15 per share. This would mark year-over-year growth of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.87 billion, up 31.66% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.56 per share and a revenue of $14.95 billion, indicating changes of +24.44% and +29.77%, respectively, from the former year.
Investors should also note any recent changes 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Nu Holdings Ltd. is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 27.68. Its industry sports an average Forward P/E of 10.7, so one might conclude that Nu Holdings Ltd. is trading at a premium comparatively.
Also, we should mention that NU has a PEG ratio of 0.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Banks - Foreign industry had an average PEG ratio of 1.04.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons 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 follow all of these stock-moving metrics, and many 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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