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Nu Holdings Ltd. (NU) Exceeds Market Returns: Some Facts to Consider

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Nu Holdings Ltd. (NU - Free Report) closed the latest trading day at $13.23, indicating a +0.99% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.9%. Elsewhere, the Dow gained 0.81%, while the tech-heavy Nasdaq added 1.22%.

Coming into today, shares of the company had lost 8.65% in the past month. In that same time, the Business Services sector gained 3.15%, while the S&P 500 gained 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 13, 2024. The company is expected to report EPS of $0.10, up 42.86% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.01 billion, reflecting a 40.73% rise from the equivalent quarter last year.

NU's full-year Zacks Consensus Estimates are calling for earnings of $0.41 per share and revenue of $11.96 billion. These results would represent year-over-year changes of +70.83% and +48.91%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Nu Holdings Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.86% higher. As of now, Nu Holdings Ltd. holds a Zacks Rank of #3 (Hold).

Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 31.95. For comparison, its industry has an average Forward P/E of 23.74, which means Nu Holdings Ltd. is trading at a premium to the group.

It's also important to note that NU currently trades at a PEG ratio of 0.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.56.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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