Nu Holdings Ltd. (NU) closed at $13.95 in the latest trading session, marking a +1.6% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.98%.
Coming into today, shares of the company had gained 25.39% in the past month. In that same time, the Finance sector gained 5.69%, while the S&P 500 gained 2.07%.
Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company plans to announce its earnings on February 20, 2025. The company is expected to report EPS of $0.12, up 50% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.3 billion, reflecting a 37.36% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 remained steady. Nu Holdings Ltd. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Nu Holdings Ltd. is presently trading at a Forward P/E ratio of 23.47. This represents a premium compared to its industry's average Forward P/E of 9.05.
It is also worth noting that NU currently has a PEG ratio of 0.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NU's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 32% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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