In the latest trading session, Nu Holdings Ltd. (NU) closed at $13.44, marking a +1.09% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
The company's stock has dropped by 15.24% in the past month, falling short of the Finance sector's loss of 4.15% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company is expected to report EPS of $0.23, up 35.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.73 billion, up 37.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.86 per share and a revenue of $22.51 billion, representing changes of +38.71% and +42.68%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.93% higher. As of now, Nu Holdings Ltd. holds a Zacks Rank of #3 (Hold).
Investors should also note Nu Holdings Ltd.'s current valuation metrics, including its Forward P/E ratio of 15.38. This signifies a premium in comparison to the average Forward P/E of 11.34 for its industry.
Investors should also note that NU has a PEG ratio of 0.54 right now. 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 industry had an average PEG ratio of 0.84 as trading concluded yesterday.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% of all 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.
To follow NU in the coming trading sessions, be sure to utilize Zacks.com.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nu Holdings Ltd. (NU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).