In the latest close session, Nu Holdings Ltd. (NU) was down 1.45% at $13.59. This move lagged the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The company's stock has climbed by 8.5% in the past month, exceeding the Finance sector's gain of 2.6% and the S&P 500's gain of 0.32%.
Analysts and investors alike will be keeping a close eye on the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.2, showcasing a 42.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.45 billion, indicating a 48.68% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.83 per share and a revenue of $22.42 billion, demonstrating changes of +33.87% and +42.13%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Nu Holdings Ltd. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.48% lower. At present, Nu Holdings Ltd. boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 16.53. Its industry sports an average Forward P/E of 11.87, so one might conclude that Nu Holdings Ltd. is trading at a premium comparatively.
Meanwhile, NU's PEG ratio is currently 0.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Banks - Foreign industry held an average PEG ratio of 0.89.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Nu Holdings Ltd. (NU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).