The latest trading session saw Nu Holdings Ltd. (NU) ending at $12.43, denoting a +0.16% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.09%.
Shares of the company have appreciated by 18.98% over the course of the past month, outperforming the Finance sector's loss of 0.33% and the S&P 500's loss of 0.21%.
Investors will be eagerly watching for the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.12, marking a 33.33% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.49 billion, reflecting a 27.57% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.54 per share and a revenue of $15.44 billion, indicating changes of +20% and +34.09%, respectively, from the former year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.22% lower. Right now, Nu Holdings Ltd. possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Nu Holdings Ltd. is holding a Forward P/E ratio of 22.98. This indicates a premium in contrast to its industry's Forward P/E of 9.77.
It is also worth noting that NU currently has a PEG ratio of 0.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Banks - Foreign was holding an average PEG ratio of 1.04 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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