Nu Holdings Ltd. (NU) ended the recent trading session at $12.14, demonstrating a +1.08% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.1%.
Shares of the company have appreciated by 16.04% over the course of the past month, outperforming the Finance sector's loss of 3.73% and the S&P 500's loss of 4.29%.
The investment community will be paying close attention to the earnings performance of Nu Holdings Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.12, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.49 billion, up 27.57% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.54 per share and revenue of $15.44 billion, indicating changes of +20% and +34.09%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 1.22% lower. Nu Holdings Ltd. is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Nu Holdings Ltd. is presently trading at a Forward P/E ratio of 22.24. This represents a premium compared to its industry's average Forward P/E of 9.68.
It's also important to note that NU currently trades at a PEG ratio of 0.66. 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 1.03.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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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