Nu Holdings Ltd. NU shares soared 8.8% in the last trading session to close at $13.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% gain over the past four weeks.
Shares of NU rallied for the second consecutive trading session. The increase comes as there is a halt in the geopolitical tensions in the Middle East currently following President Trumps intervention in the matter. As the uncertainty lessens slightly, it has instilled investor confidence back in the global stock markets, which probably drove the NU stock higher.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $3.57 billion, up 25.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Nu , the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NU going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nu is a member of the Zacks Banks - Foreign industry. One other stock in the same industry, Banco De Chile BCH, finished the last trading session 1.4% higher at $29.57. BCH has returned -6.2% over the past month.
Banco De Chile's consensus EPS estimate for the upcoming report has changed +3% over the past month to $0.64. Compared to the company's year-ago EPS, this represents a change of -7.3%. Banco De Chile currently boasts a Zacks Rank of #1.
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Nu Holdings Ltd. (NU): Free Stock Analysis Report Banco De Chile (BCH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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