The latest trading session saw Nu Holdings Ltd. (NU) ending at $11.09, denoting a +1.56% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.
Coming into today, shares of the company had lost 4.88% in the past month. In that same time, the Finance sector lost 0.51%, while the S&P 500 lost 4.03%.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company's upcoming EPS is projected at $0.11, signifying a 22.22% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.44 billion, showing a 25.85% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $0.55 per share and a revenue of $15.39 billion, demonstrating changes of +22.22% and +33.67%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Nu Holdings Ltd. is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 19.98. This denotes a premium relative to the industry's average Forward P/E of 9.9.
We can also see that NU currently has a PEG ratio of 0.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NU's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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