In the latest trading session, Nu Holdings Ltd. (NU) closed at $4.40, marking a +0.69% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.3%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 5.51%.
Coming into today, shares of the company had gained 7.37% in the past month. In that same time, the Business Services sector gained 8.96%, while the S&P 500 gained 6.41%.
Investors will be hoping for strength from Nu Holdings Ltd. as it approaches its next earnings release, which is expected to be February 14, 2023.
Any recent changes to analyst estimates for Nu Holdings Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nu Holdings Ltd. is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Nu Holdings Ltd.'s current valuation metrics, including its Forward P/E ratio of 42.29. Its industry sports an average Forward P/E of 21.9, so we one might conclude that Nu Holdings Ltd. is trading at a premium comparatively.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 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.
To follow NU in the coming trading sessions, be sure to utilize Zacks.com.
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