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Here's Why Nu Holdings Ltd. (NU) Fell More Than Broader Market
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Nu Holdings Ltd. (NU - Free Report) ended the recent trading session at $14.04, demonstrating a -4.36% change from the preceding day's closing price. This change lagged the S&P 500's 1.52% loss on the day. On the other hand, the Dow registered a loss of 2.19%, and the technology-centric Nasdaq decreased by 1.74%.
Coming into today, shares of the company had gained 9.88% in the past month. In that same time, the Finance sector gained 3.88%, while the S&P 500 gained 1.92%.
Investors will be eagerly watching for the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. On that day, Nu Holdings Ltd. is projected to report earnings of $0.2 per share, which would represent year-over-year growth of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $5.45 billion, up 48.68% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.83 per share and a revenue of $22.42 billion, representing changes of +33.87% and +42.13%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Nu Holdings Ltd. boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 17.6. This indicates a premium in contrast to its industry's Forward P/E of 11.98.
Also, we should mention that NU has a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Foreign was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% 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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Here's Why Nu Holdings Ltd. (NU) Fell More Than Broader Market
Nu Holdings Ltd. (NU - Free Report) ended the recent trading session at $14.04, demonstrating a -4.36% change from the preceding day's closing price. This change lagged the S&P 500's 1.52% loss on the day. On the other hand, the Dow registered a loss of 2.19%, and the technology-centric Nasdaq decreased by 1.74%.
Coming into today, shares of the company had gained 9.88% in the past month. In that same time, the Finance sector gained 3.88%, while the S&P 500 gained 1.92%.
Investors will be eagerly watching for the performance of Nu Holdings Ltd. in its upcoming earnings disclosure. On that day, Nu Holdings Ltd. is projected to report earnings of $0.2 per share, which would represent year-over-year growth of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $5.45 billion, up 48.68% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.83 per share and a revenue of $22.42 billion, representing changes of +33.87% and +42.13%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Nu Holdings Ltd. boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 17.6. This indicates a premium in contrast to its industry's Forward P/E of 11.98.
Also, we should mention that NU has a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Foreign was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% 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.