In the latest close session, Nu Holdings Ltd. (NU) was up +2.54% at $14.51. The stock's performance was ahead of the S&P 500's daily gain of 2.51%. On the other hand, the Dow registered a gain of 2.85%, and the technology-centric Nasdaq increased by 2.8%.
Shares of the company witnessed a loss of 4.91% over the previous month, trailing the performance of the Finance sector with its loss of 1.87%, and the S&P 500's loss of 1.66%.
Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.2, reflecting a 66.67% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.97 billion, up 52.98% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $0.84 per share and a revenue of $21.18 billion, demonstrating changes of +35.48% and +34.27%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Nu Holdings Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.54% lower. Right now, Nu Holdings Ltd. possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Nu Holdings Ltd. is presently trading at a Forward P/E ratio of 16.76. For comparison, its industry has an average Forward P/E of 10.73, which means Nu Holdings Ltd. is trading at a premium to the group.
One should further note that NU currently holds a PEG ratio of 0.57. 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 0.82.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).