Nu Holdings (NYSE: NU), a leading fintech in Latin America, has seen its stock price decline 24% from a January peak of $18.76, despite a remarkable 235% surge over the past three years. The company reported impressive financials, with 2025 revenue of $16.3 billion, a 45% year-over-year increase, and a net income jump of 51%. With a customer base expanding from 114 million to 131 million, primarily in Brazil, Nu is poised for continued growth as it prepares to enter the U.S. market.
Analysts project that Nu’s earnings per share could grow at a compound annual growth rate of 36% from 2025 to 2028, potentially doubling the stock price to $38. The current forward price-to-earnings ratio of 17.8 is below the S&P 500 average, suggesting a favorable valuation. While macroeconomic risks could impact performance, the risk/reward profile for Nu appears compelling for investors looking for growth opportunities.
Investors should monitor Nu’s earnings growth closely, as it could serve as a significant catalyst for stock performance in the coming years.
Source: fool.com