Back to top

Image: Bigstock

Is Nu (NU) Stock Outpacing Its Business Services Peers This Year?

Read MoreHide Full Article

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Nu Holdings Ltd. (NU - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

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 #5. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Nu Holdings Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for NU's full-year earnings has moved 27.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, NU has moved about 100% on a year-to-date basis. In comparison, Business Services companies have returned an average of 15.7%. This means that Nu Holdings Ltd. is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is FirstCash Holdings (FCFS - Free Report) . The stock has returned 28.9% year-to-date.

For FirstCash Holdings, the consensus EPS estimate for the current year has increased 5.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Nu Holdings Ltd. belongs to the Technology Services industry, which includes 176 individual stocks and currently sits at #79 in the Zacks Industry Rank. This group has gained an average of 37.6% so far this year, so NU is performing better in this area.

In contrast, FirstCash Holdings falls under the Financial Transaction Services industry. Currently, this industry has 39 stocks and is ranked #164. Since the beginning of the year, the industry has moved +17.9%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nu Holdings Ltd. (NU) - free report >>

FirstCash Holdings, Inc. (FCFS) - free report >>

Published in