In the latest close session, Nu Holdings Ltd. (NU) was down 2.05% at $15.80. The stock trailed the S&P 500, which registered a daily loss of 1.17%. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 2.04%.
Coming into today, shares of the company had gained 4.88% in the past month. In that same time, the Finance sector lost 1.24%, while the S&P 500 gained 2.12%.
The investment community will be paying close attention to the earnings performance of Nu Holdings Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.15, marking a 25% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.04 billion, reflecting a 37.16% rise from the equivalent quarter last year.
NU's full-year Zacks Consensus Estimates are calling for earnings of $0.56 per share and revenue of $15.22 billion. These results would represent year-over-year changes of +24.44% and +32.15%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nu Holdings Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.2% increase. 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 28.63. This expresses a premium compared to the average Forward P/E of 11.01 of its industry.
We can also see that NU currently has a PEG ratio of 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Banks - Foreign industry was having an average PEG ratio of 1.05.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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