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Nu Holdings Ltd. (NU) Stock Sinks As Market Gains: Here's Why
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The most recent trading session ended with Nu Holdings Ltd. (NU - Free Report) standing at $13.34, reflecting a -0.52% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.4%.
Shares of the company witnessed a gain of 14.03% over the previous month, beating the performance of the Business Services sector with its gain of 1.47% and the S&P 500's gain of 3.78%.
Analysts and investors alike will be keeping a close eye on the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.10, marking a 66.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.9 billion, indicating a 55.35% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.41 per share and revenue of $12.25 billion, indicating changes of +70.83% and +52.56%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.23% upward. Nu Holdings Ltd. is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Nu Holdings Ltd. has a Forward P/E ratio of 32.71 right now. This represents a premium compared to its industry's average Forward P/E of 22.7.
We can also see that NU currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.46.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Nu Holdings Ltd. (NU) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Nu Holdings Ltd. (NU - Free Report) standing at $13.34, reflecting a -0.52% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.4%.
Shares of the company witnessed a gain of 14.03% over the previous month, beating the performance of the Business Services sector with its gain of 1.47% and the S&P 500's gain of 3.78%.
Analysts and investors alike will be keeping a close eye on the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.10, marking a 66.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.9 billion, indicating a 55.35% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.41 per share and revenue of $12.25 billion, indicating changes of +70.83% and +52.56%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.23% upward. Nu Holdings Ltd. is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Nu Holdings Ltd. has a Forward P/E ratio of 32.71 right now. This represents a premium compared to its industry's average Forward P/E of 22.7.
We can also see that NU currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.46.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.