Why the Market Dipped But Nu Holdings Ltd. (NU) Gained Today

In the latest close session, Nu Holdings Ltd. (NU) was up +1.05% at $14.48. This change outpaced the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.83%.

The company's stock has climbed by 5.29% in the past month, exceeding the Finance sector's gain of 2.97% and the S&P 500's gain of 3.52%.

The upcoming earnings release of Nu Holdings Ltd. will be of great interest to investors. The company is predicted to post an EPS of $0.2, indicating a 42.86% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.45 billion, showing a 48.68% escalation compared to the year-ago 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.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Nu Holdings Ltd. is currently a Zacks Rank #4 (Sell).

Looking at valuation, Nu Holdings Ltd. is presently trading at a Forward P/E ratio of 17.18. This expresses a premium compared to the average Forward P/E of 12.41 of its industry.

It's also important to note that NU currently trades at a PEG ratio of 0.57. 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 average PEG ratio for the Banks - Foreign industry stood at 0.91 at the close of the market yesterday.

The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 44% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research