Nu Holdings Ltd. (NU) closed the most recent trading day at $16.00, moving +1.01% from the previous trading session. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 1.86%.
The company's shares have seen an increase of 0.38% over the last month, surpassing the Finance sector's loss of 0.67% and falling behind the S&P 500's gain of 2.45%.
Investors will be eagerly watching for the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. The company is expected to report EPS of $0.15, up 25% from the prior-year quarter. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.56 per share and revenue of $14.95 billion, indicating changes of +24.44% and +29.77%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.2% increase. Nu Holdings Ltd. presently features a Zacks Rank of #2 (Buy).
Investors should also note Nu Holdings Ltd.'s current valuation metrics, including its Forward P/E ratio of 28.12. This valuation marks a premium compared to its industry average Forward P/E of 10.77.
Also, we should mention that NU has a PEG ratio of 0.82. 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 1.05 as trading concluded yesterday.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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