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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 at $6.94 in the latest trading session, marking a +1.31% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.

Coming into today, shares of the company had lost 3.66% in the past month. In that same time, the Business Services sector lost 0.6%, while the S&P 500 lost 1.38%.

Nu Holdings Ltd. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.06 per share. This would mark year-over-year growth of 500%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 57.44% from the prior-year quarter.

NU's full-year Zacks Consensus Estimates are calling for earnings of $0.21 per share and revenue of $7.76 billion. These results would represent year-over-year changes of +425% and +61.93%, respectively.

Any recent changes to analyst estimates for Nu Holdings Ltd. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 25.49% higher. Nu Holdings Ltd. is currently a Zacks Rank #2 (Buy).

Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 32.11. This valuation marks a premium compared to its industry's average Forward P/E of 22.64.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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