Nu Holdings has seen significant stock growth with strong earnings, expanding customer base, and international presence

From Nasdaq.: 2024-10-07 07:45:00

Brazilian fintech Nu Holdings Ltd. (NYSE: NU) has quickly amassed over 100 million customers in Latin America. Warren Buffett’s Berkshire Hathaway Inc. holds over 107 million shares of NU stock, making it a hot bank stock. Nu saw an 8% drop in shares last week but remains up 86% over the past year.

Nu has a strong earnings history with net income of $487 million in the latest quarter, beating analyst expectations. Revenue has surged, reaching $2.8 billion in Q2. The company boasts a 27% return on equity and a low debt-to-equity ratio of 0.25.

Analysts project Nu’s earnings to climb by over 51% this year. The company’s rapid earnings growth can be attributed to its expanding customer base. Nu has over 100 million customers, with a growing international presence in Mexico and Colombia. Its digital platform has opened access to unbanked populations.

Nu engages customers well, with an average of 4.1 products per customer and monthly revenue of $11.20 per active customer. The company has room to grow in loans and credit cards. Nu’s forward P/E ratio is high at 32.0, but its fundamentals show no signs of slowing down.

Though Nu’s stock has seen significant growth, investors must consider if further expansion and international reach will drive share prices higher. While the recent stock dip may signal a trend, Nu’s continued earnings growth and customer expansion provide investors with potential for future growth opportunities.



Read more at Nasdaq.:: Is Nu Holdings Overvalued or Primed for More Growth?