In the latest close session, Nu Holdings Ltd. (NU) was up +2.04% at $18.55. This move outpaced the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a drop of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Prior to today's trading, shares of the company had gained 9.12% outpaced the Finance sector's loss of 0.45% and the S&P 500's gain of 0.38%.
Analysts and investors alike will be keeping a close eye on the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.18 per share. This would mark year-over-year growth of 50%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.54 billion, indicating a 51.82% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and a revenue of $15.63 billion, representing changes of +31.11% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nu Holdings Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 1.18% higher. At present, Nu Holdings Ltd. boasts a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Nu Holdings Ltd. is currently being traded at a Forward P/E ratio of 21.14. Its industry sports an average Forward P/E of 11.56, so one might conclude that Nu Holdings Ltd. is trading at a premium comparatively.
It is also worth noting that NU currently has a PEG ratio of 0.59. 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. NU's industry had an average PEG ratio of 1.03 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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