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Nu Holdings Ltd. (NU) Outpaces Stock Market Gains: What You Should Know

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Nu Holdings Ltd. (NU - Free Report) closed at $16.17 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.49% gain on the day. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.72%.

The company's stock has climbed by 16.97% in the past month, exceeding the Finance sector's gain of 3.48% and the S&P 500's gain of 2.99%.

Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.15, showcasing a 25% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.87 billion, up 31.66% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.56 per share and revenue of $14.95 billion. These totals would mark changes of +24.44% and +29.77%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Nu Holdings Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.09% higher. Nu Holdings Ltd. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Nu Holdings Ltd. is presently being traded at a Forward P/E ratio of 28.73. This expresses a premium compared to the average Forward P/E of 10.55 of its industry.

It is also worth noting that NU currently has a PEG ratio of 0.83. 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 Banks - Foreign industry was having an average PEG ratio of 1.02.

The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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