Nu Holdings Ltd. (NU) closed the most recent trading day at $13.99, moving +2.34% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.
The stock of company has risen by 9.98% in the past month, leading the Finance sector's gain of 2.89% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Nu Holdings Ltd. will be of great interest to investors. The company is predicted to post an EPS of $0.2, indicating a 42.86% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.45 billion, showing a 48.68% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.83 per share and a revenue of $22.42 billion, signifying shifts of +33.87% and +42.13%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nu Holdings Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Nu Holdings Ltd. currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Nu Holdings Ltd. is at present trading with a Forward P/E ratio of 16.39. This expresses a premium compared to the average Forward P/E of 11.77 of its industry.
We can additionally observe that NU currently boasts a PEG ratio of 0.55. 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. The Banks - Foreign was holding an average PEG ratio of 0.86 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).