Why Nu Holdings Ltd. (NU) Dipped More Than Broader Market Today
In the latest trading session, Nu Holdings Ltd. (NU) closed at $9.27, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.32% loss on the day. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Shares of the company have appreciated by 9.33% over the course of the past month, outperforming the Business Services sector's gain of 5% and the S&P 500's gain of 4.59%.
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 February 22, 2024. The company is forecasted to report an EPS of $0.09, showcasing a 200% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.39 billion, indicating a 64.75% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nu Holdings Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nu Holdings Ltd. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Nu Holdings Ltd. is currently being traded at a Forward P/E ratio of 22.58. For comparison, its industry has an average Forward P/E of 24.18, which means Nu Holdings Ltd. is trading at a discount to the group.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Nu Holdings Ltd. (NU) : Free Stock Analysis Report
