Nu Holdings Ltd. (NU) ended the recent trading session at $16.88, demonstrating a +1.32% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.
The company's stock has dropped by 4.69% in the past month, falling short of the Finance sector's gain of 2.19% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.18, showcasing a 50% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, up 52.52% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and a revenue of $15.65 billion, representing changes of +31.11% and +35.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Nu Holdings Ltd. holds a Zacks Rank of #2 (Buy).
In the context of valuation, Nu Holdings Ltd. is at present trading with a Forward P/E ratio of 28.4. Its industry sports an average Forward P/E of 12.48, so one might conclude that Nu Holdings Ltd. is trading at a premium comparatively.
It's also important to note that NU currently trades at a PEG ratio of 0.8. 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. Banks - Foreign stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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