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Nu Holdings Ltd. (NU) Stock Sinks As Market Gains: Here's Why

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Nu Holdings Ltd. (NU - Free Report) ended the recent trading session at $11.76, demonstrating a -0.25% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq decreased by 0.03%.

Heading into today, shares of the company had gained 2.08% over the past month, outpacing the Business Services sector's loss of 2.38% and the S&P 500's gain of 0.17% 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%. In the meantime, our current consensus estimate forecasts the revenue to be $2.51 billion, indicating a 55.19% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.39 per share and a revenue of $11.39 billion, signifying shifts of +62.5% and +41.81%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Nu Holdings Ltd. These revisions help to show the ever-changing nature of 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nu Holdings Ltd. is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Nu Holdings Ltd. has a Forward P/E ratio of 30.23 right now. For comparison, its industry has an average Forward P/E of 24.48, which means Nu Holdings Ltd. is trading at a premium to the group.

Meanwhile, NU's PEG ratio is currently 0.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.61.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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