In the latest close session, Nu Holdings Ltd. (NU) was up +1.75% at $13.36. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 1.52%.
Shares of the company have appreciated by 1.08% over the course of the past month, underperforming the Finance sector's gain of 2.74%, and outperforming the S&P 500's loss of 1.82%.
The investment community will be paying close attention to the earnings performance of Nu Holdings Ltd. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.2, reflecting a 42.86% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.33 billion, indicating a 45.22% 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 $21.89 billion, demonstrating changes of +33.87% and +38.76%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.48% fall in the Zacks Consensus EPS estimate. Nu Holdings Ltd. presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Nu Holdings Ltd. is holding a Forward P/E ratio of 15.74. This indicates a premium in contrast to its industry's Forward P/E of 11.52.
Investors should also note that NU has a PEG ratio of 0.53 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Banks - Foreign industry held an average PEG ratio of 0.84.
The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).