Latest news with #NuHoldingsLtd
Yahoo
5 days ago
- Business
- Yahoo
Nu Holdings Ltd. (NU) is Attracting Investor Attention: Here is What You Should Know
Nu Holdings Ltd. (NU) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this company have returned -3.5%, compared to the Zacks S&P 500 composite's +5.2% change. During this period, the Zacks Banks - Foreign industry, which Nu falls in, has gained 6.7%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Nu is expected to post earnings of $0.12 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -4%. For the current fiscal year, the consensus earnings estimate of $0.54 points to a change of +20% from the prior year. Over the last 30 days, this estimate has changed -0.6%. For the next fiscal year, the consensus earnings estimate of $0.78 indicates a change of +44.4% from what Nu is expected to report a year ago. Over the past month, the estimate has remained unchanged. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of Nu , the consensus sales estimate of $3.69 billion for the current quarter points to a year-over-year change of +29.6%. The $14.8 billion and $19.06 billion estimates for the current and next fiscal years indicate changes of +28.5% and +28.8%, respectively. Nu reported revenues of $3.25 billion in the last reported quarter, representing a year-over-year change of +18.7%. EPS of $0.12 for the same period compares with $0.09 a year ago. Compared to the Zacks Consensus Estimate of $3.33 billion, the reported revenues represent a surprise of -2.52%. The EPS surprise was 0%. Over the last four quarters, Nu surpassed consensus EPS estimates two times. The company could not beat consensus revenue estimates in any of the last four quarters. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Nu is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 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 Nu Holdings Ltd. (NU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Nu Holdings Ltd. (NU) Slashes Management Layers, CEO Confirms
Nu Holdings Ltd. (NYSE:NU) has significantly streamlined its organizational structure, cutting its management layers in half to enhance efficiency as the company continues to grow rapidly. According to CEO and co-founder David Vélez, the firm had become overly hierarchical, with up to 14 layers of management. The restructuring comes alongside the recent exits of senior leaders Jag Duggal and Youssef Lahrech, though both will continue supporting the company as consultants. Headquartered in Brazil, Nu provides digital banking services and offers a wide range of financial products across spending, saving, investing, borrowing, and insurance. Velez made the following comment on this recent development: "There were four layers between me and the senior managers of the products and like 14 layers across the organization, which is too much for an organization that needs to be agile, make decisions quickly, and has so much growth ahead. We have reduced those layers effectively in half. And we've increased the speed at which we're moving significantly." With over 118 million clients in Brazil, Mexico, and Colombia, Nu Holdings Ltd. (NYSE:NU) is preparing to bring in new C-level executives to support its international expansion. One key addition is former Brazil central bank chief Roberto Campos Neto, who will join as global head of public policy starting July 1. As part of the changes, some managers have returned to individual contributor roles. However, Vélez emphasized that there have been no layoffs and none are planned. He also clarified that the shift is focused on improving execution and agility, not cutting costs. In fact, products that previously took up to 10 months to roll out are now being launched much faster thanks to the streamlined structure. NU has surged by over 12% since the start of 2025. While we acknowledge the potential of NU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NU and that has 100x upside potential, check out our report about this cheapest AI stock. READ MORE: and Disclosure. None. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Nu Holdings Ltd. (NU) Is a Trending Stock: Facts to Know Before Betting on It
Nu Holdings Ltd. (NU) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this company have returned +4.4%, compared to the Zacks S&P 500 composite's +13.4% change. During this period, the Zacks Banks - Foreign industry, which Nu falls in, has gained 11.8%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Nu is expected to post earnings of $0.12 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -4% over the last 30 days. The consensus earnings estimate of $0.54 for the current fiscal year indicates a year-over-year change of +20%. This estimate has remained unchanged over the last 30 days. For the next fiscal year, the consensus earnings estimate of $0.78 indicates a change of +45.1% from what Nu is expected to report a year ago. Over the past month, the estimate has changed +0.9%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #4 (Sell). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Nu , the consensus sales estimate of $3.69 billion for the current quarter points to a year-over-year change of +29.6%. The $14.8 billion and $19.06 billion estimates for the current and next fiscal years indicate changes of +28.5% and +28.8%, respectively. Nu reported revenues of $3.25 billion in the last reported quarter, representing a year-over-year change of +18.7%. EPS of $0.12 for the same period compares with $0.09 a year ago. Compared to the Zacks Consensus Estimate of $3.33 billion, the reported revenues represent a surprise of -2.52%. The EPS surprise was 0%. Over the last four quarters, Nu surpassed consensus EPS estimates two times. The company could not beat consensus revenue estimates in any of the last four quarters. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Nu is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. 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 Nu Holdings Ltd. (NU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
20-05-2025
- Business
- Mint
Nu COO Lahrech Steps Down, Adding to Fintech Turnover
(Bloomberg) -- Nu Holdings Ltd. said Chief Operating Officer Youssef Lahrech is stepping down after more than five years, adding to a string of management changes in the upper ranks of Latin America's standout financial technology firm. Lahrech will maintain a role at Sao Paulo-based Nu as permanent observer on the board's audit and risk committee, and he'll advise the company on credit strategy, the company said Tuesday in a filing. Chief Executive Officer David Velez will absorb his duties. The news came as a surprise, since Lahrech had appeared on Nu's quarterly conference call only a week earlier. In March, Nu said Lahrech would lead global enterprise and global product operations, with Velez resuming direct command over the management team. Nu shares fell 4.9% in late trading. The shares had gained 23% this year through Tuesday's regular session. Lahrech's departure follows exits this year by Chief Product Officer Jag Duggal, Investor Relations Officer Jorg Friedemann and Chief Legal Officer Elita Ariaz. Earlier in May, Nu announced that former central bank chief Roberto Campos Neto would join as vice chairman. After years of rapid growth fueled by a previously untapped market of Brazilians seeking better access to credit, Nu is now seeking to expand in a tougher climate with higher interest rates and potential delinquencies. Lahrech joined Nu in 2020 as COO and took on the title of president in 2022. He had previously spent 19 years at Capital One Financial Corp. in Canada and the US. The company said it continues to 'streamline efficiency' and speed its operations, according to the filing. --With assistance from Cristiane Lucchesi. (Corrects name of former chief legal officer in fifth paragraph) More stories like this are available on
Yahoo
15-05-2025
- Business
- Yahoo
Is Nu Holdings (NU) the Best High Volume Stock to Buy Now?
We recently published a list of the 13 Best High Volume Stocks to Buy Now. In this article, we are going to take a look at where Nu Holdings Ltd. (NYSE:NU) stands against other best high volume stocks. On May 9, BMO private wealth chief market strategist Carol Schleif joined CNBC's 'Squawk Box' to discuss the latest market trends and the state of the economy. Reflecting on a market decline in April that reached a ~20% drop, Schleif noted that the market recovered and ended only 3% to 4 % down. She described investor reactions during that period as mixed: about 10% were very eager to buy, but another 10% were quite nervous, while the majority remained measured. She emphasized the important distinction between markets and the economy and noted that markets often move ahead of economic realities and quickly shift focus to new topics as part of their discounting mechanism. This is why markets serve as economic indicators and anticipate future developments. She talked about how individual risk tolerance varies, with some younger clients adopting conservative strategies and some older clients favoring aggressive positions, especially in tech. Schleif acknowledged that tariffs are expected to rise from under 3% to ~10%, but despite this anticipation, she's confident that markets and companies will adjust to the changes. She noted the unusual shift in US influence, which now extends beyond material control to more intangible domains, and described this shift in responsibility as significant and complex. Schleif also emphasized the value of globally diversified portfolios, which have been challenging to maintain during periods when the US market outperformed. However, she noted that such diversification, which includes fixed income and foreign equities, has provided better performance and protection year-to-date and helps investors weather volatility better than those concentrated solely in US assets. We first used stock screeners to compile a list of stocks with high average 3-month volumes. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. Note: All data was collected on May 12. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A wide angle shot of a team of bankers and financial advisors evaluating an investment portfolio on a touchscreen of Hedge Fund Holders: 79 Nu Holdings Ltd. (NYSE:NU) provides a digital banking platform. It offers spending, savings & investing, and borrowing solutions. The company also has protection solutions, such as NuInsurance protection solutions, including life, mobile, auto, home, and financial protection insurance policies. Its core growth driver is its Brazilian operations at Nubank, which is the company's digital bank. In 2024, Nu Holdings (NYSE:NU) added over 1 million customers per month in Brazil, which served 58% of its population and made the company the third-largest financial institution in the country by customer count. This market has an 83.1% monthly activity rate. In Brazil, Nubank's high-income segment is also expanding, which is why the company's premium credit card, Ultravioleta, saw customer numbers increase by 132% year-over-year to ~700,000. Credit card purchase volume grew 106% in Q4 2024. Nubank is also expanding its Money Platform in Brazil with initiatives like NuMarketplace, NuTravel, and the launch of its MVNO service, NuCel, to further monetize its large customer base. On April 25, Barclays raised the price target on Nu Holdings Ltd. (NYSE:NU) to $16 from $15 while keeping an Overweight rating. The adjustment came after the firm noted Nu's strength in personal lending. White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q4 2024 investor letter: 'Nu Holdings Ltd. (NYSE:NU) has recently corrected due to Brazil's macroeconomic struggles. Nu reports its earnings in U.S. dollars but generates revenue in Brazilian reais, Mexican pesos, and Colombian pesos. The sharp depreciation of these emerging market currencies, coupled with ongoing macroeconomic uncertainty, is making investors uncomfortable. Our due diligence suggests that Nu remains unaffected. Importantly, we continue to believe that Nu is a rare business with a combination of a large market opportunity, a strong moat driven by its superior cost structure, and a brilliant management team.' Overall, NU ranks 7th on our list of the best high volume stocks to buy now. While we acknowledge the growth potential of NU, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
