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Is Nu (NU) Outperforming Other Business Services Stocks This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nu Holdings Ltd. (NU - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Nu Holdings Ltd. is one of 318 individual stocks in the Business Services sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Nu Holdings Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NU's full-year earnings has moved 28% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, NU has gained about 79.6% so far this year. At the same time, Business Services stocks have gained an average of 9.3%. As we can see, Nu Holdings Ltd. is performing better than its sector in the calendar year.

One other Business Services stock that has outperformed the sector so far this year is Palantir Technologies Inc. (PLTR - Free Report) . The stock is up 174.3% year-to-date.

For Palantir Technologies Inc. the consensus EPS estimate for the current year has increased 50% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Nu Holdings Ltd. belongs to the Technology Services industry, a group that includes 178 individual companies and currently sits at #92 in the Zacks Industry Rank. On average, stocks in this group have gained 27.9% this year, meaning that NU is performing better in terms of year-to-date returns. Palantir Technologies Inc. is also part of the same industry.

Nu Holdings Ltd. and Palantir Technologies Inc. could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.


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