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Nu Holdings Ltd. (NU) Stock Slides as Market Rises: Facts to Know Before You Trade

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Nu Holdings Ltd. (NU - Free Report) ended the recent trading session at $11.99, demonstrating a -0.08% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the company had gained 0.08% over the past month, outpacing the Business Services sector's loss of 2.34% and the S&P 500's loss of 0.35% in that time.

The investment community will be paying close attention to the earnings performance of Nu Holdings Ltd. in its upcoming release. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.09 per share. This would mark year-over-year growth of 125%. Alongside, our most recent consensus estimate is anticipating revenue of $2.51 billion, indicating a 55.19% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.39 per share and a revenue of $11.39 billion, indicating changes of +62.5% and +41.81%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 remained stagnant within the past month. Nu Holdings Ltd. is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Nu Holdings Ltd. is presently being traded at a Forward P/E ratio of 30.77. For comparison, its industry has an average Forward P/E of 23.76, which means Nu Holdings Ltd. is trading at a premium to the group.

One should further note that NU currently holds a PEG ratio of 0.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.54.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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