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Why the Market Dipped But Nu Holdings Ltd. (NU) Gained Today
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The latest trading session saw Nu Holdings Ltd. (NU - Free Report) ending at $10.87, denoting a +0.93% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.46%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 0.64%.
Heading into today, shares of the company had lost 9.87% over the past month, lagging the Business Services sector's loss of 5.21% and the S&P 500's loss of 3.04% in that time.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company is expected to report EPS of $0.09, up 125% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.51 billion, reflecting a 55.19% rise from the equivalent quarter last year.
NU's full-year Zacks Consensus Estimates are calling for earnings of $0.39 per share and revenue of $11.24 billion. These results would represent year-over-year changes of +62.5% and +39.97%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Nu Holdings Ltd. presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 27.61. This expresses a premium compared to the average Forward P/E of 23.38 of its industry.
It's also important to note that NU currently trades at a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.53.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Nu Holdings Ltd. (NU) Gained Today
The latest trading session saw Nu Holdings Ltd. (NU - Free Report) ending at $10.87, denoting a +0.93% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.46%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 0.64%.
Heading into today, shares of the company had lost 9.87% over the past month, lagging the Business Services sector's loss of 5.21% and the S&P 500's loss of 3.04% in that time.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company is expected to report EPS of $0.09, up 125% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.51 billion, reflecting a 55.19% rise from the equivalent quarter last year.
NU's full-year Zacks Consensus Estimates are calling for earnings of $0.39 per share and revenue of $11.24 billion. These results would represent year-over-year changes of +62.5% and +39.97%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Nu Holdings Ltd. presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 27.61. This expresses a premium compared to the average Forward P/E of 23.38 of its industry.
It's also important to note that NU currently trades at a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.53.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.