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Nu Holdings Ltd. (NU) closed the latest trading day at $12.19, indicating a +1.67% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.
The company's shares have seen an increase of 15.62% over the last month, surpassing the Finance sector's gain of 3.86% and the S&P 500's gain of 2.69%.
The investment community will be closely monitoring the performance of Nu Holdings Ltd. in its forthcoming earnings report. The company is scheduled to release its earnings on February 20, 2025. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 50% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.3 billion, up 37.36% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Nu Holdings Ltd. is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Nu Holdings Ltd. is currently exchanging hands at a Forward P/E ratio of 20.5. This expresses a premium compared to the average Forward P/E of 8.82 of its industry.
It is also worth noting that NU currently has a PEG ratio of 0.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Banks - Foreign industry stood at 1 at the close of the market yesterday.
The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 32% of all industries, numbering over 250.
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.