Nu Holdings Ltd. (NU) closed the most recent trading day at $15.35, moving +2.68% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq appreciated by 1.96%.
The company’s shares have seen an increase of 4.77% over the last month, not keeping up with the Finance sector’s gain of 4.89% and outstripping the S&P 500’s gain of 3.93%.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company is predicted to post an EPS of $0.2, indicating a 66.67% growth compared to the equivalent 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 annual period, the Zacks Consensus Estimates anticipate earnings of $0.84 per share and a revenue of $21.18 billion, signifying shifts of +35.48% and +34.27%, respectively, from the 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 3.54% 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 17.71. For comparison, its industry has an average Forward P/E of 11.46, which means Nu Holdings Ltd. is trading at a premium to the group.
It’s also important to note that NU currently trades at a PEG ratio of 0.6. 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 industry currently had an average PEG ratio of 0.85 as of yesterday’s close.
The Banks – Foreign industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 250+ industries.
