Momentum Investing 101: Why NU Stock Is Making Waves Right Now

What’s Momentum Investing All About?

Imagine you’re riding a wave—the longer it goes, the more likely it’ll keep rolling. That’s basically momentum investing. You buy a stock that’s already on an upswing, betting it’ll keep climbing before you exit. Sounds simple, but the tricky part? Identifying which stocks actually have staying power versus those about to crash.

That’s where the Zacks Momentum Style Score comes in—it’s a rating system that cuts through the noise by looking at two key things: price trends and earnings estimate revisions. Think of it as a momentum detector.

Why Nu Holdings (NU) is on the Radar

NU just scored an A on the Momentum Style Score, paired with a Zacks Rank #2 (Buy rating). Here’s what the numbers are saying:

Price Performance That Beats Its Peers:

• NU up 0.44% last week vs. Banks - Foreign industry down 2.46%
• Monthly gain of 0.32% (industry down 2.93%)
• Quarterly jump: +7.36% (S&P 500 only +4%)
• Year-to-date: +14.23% (market at +12.33%)

The stock isn’t just moving—it’s outpacing both its sector and the broader market. That’s the kind of relative strength momentum hunters love.

Volume Tells the Story:

NU’s averaging 37.4M shares over the last 20 days. Why does that matter? A surging stock on high volume = real buying interest, not just random noise. That’s a bullish signal.

The Earnings Revisions Picture

Here’s where things get interesting. Earnings estimates don’t lie—when analysts keep raising their numbers, it usually means the company’s story is getting better.

In the past two months:

• 2 full-year estimates went UP, 0 went DOWN
• Consensus EPS estimate climbed from $0.56 to $0.58
• Next fiscal year: 2 upward revisions, ZERO downgrades

That’s the kind of positive revision trend that separates real momentum plays from hype.

Bottom Line

NU checks multiple boxes—outperforming price action, positive estimate revisions, solid volume. For investors hunting near-term catalysts, this one’s worth keeping on the watchlist. Just remember: momentum can reverse fast, so position sizing matters.