Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Nu Holdings Ltd. (NU) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Historical EPS growth for Nu is 192%, but the projected EPS growth for this year is 25.2%, significantly higher than the industry average of 11.1% [4] Group 3: Asset Utilization - Nu's asset utilization ratio (sales-to-total-assets ratio) is 0.24, indicating that the company generates $0.24 in sales for every dollar in assets, compared to the industry average of 0.05, showcasing superior efficiency [5] Group 4: Sales Growth - The company's sales are expected to grow by 32.2% this year, while the industry average is stagnant at 0%, positioning Nu favorably in terms of sales growth [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Nu, with the Zacks Consensus Estimate for the current year increasing by 1.2% over the past month, which is a favorable indicator for stock price movements [8][7] Group 6: Conclusion - Nu has achieved a Zacks Rank of 2 and a Growth Score of A, suggesting it is a potential outperformer and a solid choice for growth investors [10]
3 Reasons Growth Investors Will Love Nu (NU)