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Nu Holdings Ltd. (NU) Outpaces Stock Market Gains: What You Should Know

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Nu Holdings Ltd. (NU - Free Report) closed the most recent trading day at $7.87, moving +1.94% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.39%.

Prior to today's trading, shares of the company had gained 2.39% over the past month. This has lagged the Business Services sector's gain of 3.29% and the S&P 500's gain of 3.16% in that time.

Investors will be hoping for strength from Nu Holdings Ltd. as it approaches its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 51.39% from the year-ago period.

NU's full-year Zacks Consensus Estimates are calling for earnings of $0.17 per share and revenue of $7.5 billion. These results would represent year-over-year changes of +325% and +56.43%, respectively.

Any recent changes to analyst estimates for Nu Holdings Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.7% higher within the past month. Nu Holdings Ltd. is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Nu Holdings Ltd. has a Forward P/E ratio of 46.32 right now. For comparison, its industry has an average Forward P/E of 23.24, which means Nu Holdings Ltd. is trading at a premium to the group.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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