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Nu Holdings Ltd. (NU) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Nu Holdings Ltd. (NU - Free Report) closed at $17.75, marking a -5.38% move from the previous day. This move lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.94%.

Coming into today, shares of the company had gained 12.07% in the past month. In that same time, the Finance sector gained 0.35%, while the S&P 500 gained 0.89%.

Investors will be eagerly watching for the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.18 per share. This would mark year-over-year growth of 50%. At the same time, our most recent consensus estimate is projecting a revenue of $4.54 billion, reflecting a 51.82% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.6 per share and revenue of $15.63 billion, which would represent changes of +33.33% and 0%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.47% higher. Currently, Nu Holdings Ltd. is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Nu Holdings Ltd. is presently being traded at a Forward P/E ratio of 21.75. This indicates a premium in contrast to its industry's Forward P/E of 11.7.

It is also worth noting that NU currently has a PEG ratio of 0.61. 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. The Banks - Foreign industry currently had an average PEG ratio of 1.06 as of yesterday's close.

The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 37, finds itself in the top 16% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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