Nu (NU) Surges 13.0%: Is This an Indication of Further Gains?
Nu Holdings Ltd. (NU) shares ended the last trading session 13% higher at $15.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.6% loss over the past four weeks.
The increased investor optimism in the stock can be attributed to Brazil’s election-driven market rally and improved sentiment toward business-friendly policies.
This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +35.3%. Revenues are expected to be $5.73 billion, up 37.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Nu , the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NU going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nu is part of the Zacks Banks - Foreign industry. Western New England Bancorp (WNEB), another stock in the same industry, closed the last trading session 0.7% lower at $13.84. WNEB has returned 0.3% in the past month.
For Western New England Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. This represents a change of +62.5% from what the company reported a year ago. Western New England Bancorp currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
