Nu Holdings Ltd (NYSE:NU) is considered one of the best stocks for long-term growth. Citi upgraded NU from Sell to Buy, with a new price target of $18. Despite a 15% surge since August 14, Citi sees a 29.6% upside at $13.89.

Citi praised Nu’s strong quarters amid macroeconomic concerns, highlighting the company’s ability to navigate tough periods and accelerate in key portfolios. The firm also noted Nu’s impressive return on equity at 28%, outperforming its competitors.

Nu Holdings reported $3.7 billion in revenue in Q2 2025, with a 32.1% year-over-year growth. The company’s revenue has been expanding at an 85% annualized rate since 2021. Despite this growth, Nu trades at a reasonable forward P/E ratio of 25x.

While NU shows promise as an investment, Citi suggests that certain AI stocks may offer greater upside potential with less downside risk. For those seeking an undervalued AI stock poised to benefit from tariffs and onshoring trends, Citi recommends checking out their free report on the best short-term AI stock.

Read more at Yahoo Finance: Citi Upgrades Nu Holdings (NU) to Buy After Strong Earnings Momentum