Core Viewpoint - Nu Holdings Ltd. (NU) has experienced a significant stock decline of nearly 27% over the past six months, contrasting sharply with the 6% growth in the industry [1] Company Performance - NU's performance is notably weaker compared to peers, with Banco Santander (Brasil) S.A. (BSBR) declining approximately 11% during the same period, while SoFi Technologies (SOFI) surged over 26% [2][3] - The company has a diversified revenue model that includes lending, interchange fees, and marketplace services, which helps mitigate risks and provides stability during economic uncertainties [6] - In the fourth quarter, NU reported a 24% year-over-year revenue increase, indicating robust financial performance [8] Customer Growth and Market Position - NU has added 4.5 million customers in the fourth quarter of 2024, bringing its global customer count to 114.2 million, driven by its digital-first strategy [5] - The company is expanding its operations across Latin America, particularly in Mexico and Colombia, where adoption is accelerating [5] Financial Metrics - NU's trailing 12-month Return on Equity (ROE) is 30.4%, significantly higher than the industry average of 11.1% [9] - The trailing 12-month Return on Invested Capital (ROIC) stands at 12.5%, well above the industry average of 3% [11] Earnings and Sales Growth - The Zacks Consensus Estimate for NU's 2025 earnings is 54 cents, indicating a 20% growth from the previous year, with expected earnings growth of 45.7% in 2026 [13] - Sales are projected to grow by 33.7% and 26.3% year-over-year in 2025 and 2026, respectively [13] Valuation Concerns - NU stock is currently trading at 17.77 times forward earnings, more than double the sector's average of 8.58 times, reflecting market optimism about its growth potential [14] - The high valuation introduces risks, as any earnings shortfall or slower growth could lead to a sharp correction [14] Investment Outlook - While NU's innovative fintech model and strong financial performance justify its valuation, the current price levels may limit near-term upside potential [15] - Existing investors may consider holding positions for long-term growth, while new investors might wait for a pullback before entering [15]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Cathie Wood and Warren Buffett could not be more different in their investing style, but they have one thing in common: Nubank (NYSE: NU )The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has bee ...

Nu Holdings ( NU ) is capitalizing on the LatAm banking by blending scale, speed, and simplicity through a digital-first model. With 114 million clients across Brazil, Mexico, and Colombia, the company’s growth is nothing short of explosive, backed by a rising deposit base, strong engagement, andYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Edu ...

This is a rapidly growing company. It has found remarkable success catering to a part of the world that has a big underbanked and unbanked population. Nu's focus on using technology to better serve customers has been a winning strategy. Revenue grew 1,782% from $612 million in 2019 to $11.5 billion in 2024. This was supported by a customer base that expanded nearly six-fold during that time. More than half of adults in Brazil are Nu customers. Colombia and Mexico, while newer markets, also have huge potenti ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end Q1, consider joining Out Fox The Street .Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NU over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not rece ...

Despite having a market cap of more than $50 billion, Nu Holdings (NU -4.17%) might not be a familiar business to many investors in the U.S. That's because its operations are in Brazil, Mexico, and Colombia.The company's shares have been volatile since their initial public offering in December 2021. However, they have soared 180% in the past 24 months. This is true even though there's been a 26% drop since November. Nu trades for less than $12 a share. Does this make the fintech stock a smart buying opportu ...

Warren Buffett often talks about the role of luck, about being born in the United States, and also his famous quote “Don't bet against America”. I'm mentioning this because being a long-term investor in US stocks is different fromEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or t ...

Building my low-risk passive income nest egg. Hate gambling and losing my hard-earned cash! Pursuing ~12% average annual returns while taking on the least amount of risk. Consistency over volatility. 15 years of professional equity research experience including a top Mayfair hedge fund, covering growing cash-generative companies operating in developed industries. Focus my research on risk factors rather than growth opportunities. I would call myself a contrarian risk-averse investor. I am an avid reader and ...

Nu Holdings (NYSE: NU ) lost its momentum at the end of 2024 due to a weakening Brazilian Real and has not been able to recover ground since 2025. Yet, Nu keeps showing promising improvements quarter after quarter that shouldFriso Alenus is a junior financial analyst at a private equity and venture capital firm. He has been actively involved in the stock market since December 2020, sharpening his analytical skills and investment decision-making. He is also a CFA Level I candidate. As a contributor to Seekin ...