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Are Business Services Stocks Lagging Nu (NU) This Year?

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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Nu Holdings Ltd. is a member of the Business Services sector. This group includes 318 individual stocks and currently holds a Zacks Sector Rank of #6. 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Nu Holdings Ltd. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NU's full-year earnings has moved 3.1% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, NU has moved about 104.7% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 21.1% on a year-to-date basis. As we can see, Nu Holdings Ltd. is performing better than its sector in the calendar year.

Another stock in the Business Services sector, Direct Digital Holdings, Inc. (DRCT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 277.3%.

In Direct Digital Holdings, Inc.'s case, the consensus EPS estimate for the current year increased 525% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Nu Holdings Ltd. belongs to the Technology Services industry, a group that includes 176 individual companies and currently sits at #76 in the Zacks Industry Rank. On average, this group has gained an average of 49% so far this year, meaning that NU is performing better in terms of year-to-date returns.

On the other hand, Direct Digital Holdings, Inc. belongs to the Advertising and Marketing industry. This 15-stock industry is currently ranked #92. The industry has moved +2% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Nu Holdings Ltd. and Direct Digital Holdings, Inc. as they could maintain their solid performance.


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