From Yahoo Finance: 2025-06-28 18:23:00

Fintech company Nu Holdings focuses on underbanked populations in Latin America, boasting impressive growth and navigating market volatility. With soaring earnings, the stock appears enticing at its current valuation. Nu’s $65 billion market cap makes it a substantial player, despite flying under the radar for many U.S. investors. The stock has soared by 230% in the past three years, offering a volatile but potentially rewarding investment opportunity.

Nu’s strategic focus on unbanked and underbanked populations in Latin America has paid off, as evidenced by its 119 million customers, mostly in Brazil. The company has doubled its customer base in the last three years and continues to expand in Mexico and Colombia. Nu’s leadership believes they have only captured 5% of their total addressable market in Brazil, with plans for further innovation and market expansion.

Despite being heavily exposed to macroeconomic and geopolitical risks, Nu has shown exceptional performance, with soaring revenues and profits. Diluted earnings per share increased by 47% year over year in Q1, and analysts forecast continued growth. With a forward P/E ratio of 23.5, investors may find value in buying this fintech stock while it remains below $15.

Investors should consider the risks associated with Nu Holdings’ operations in Latin America, a developing region prone to volatility and external factors. Interest rates, economic downturns, and political instability are key concerns that could impact Nu’s revenue and earnings. However, the company’s strong financial performance and growth potential make it an attractive investment opportunity for those willing to weather the risks.

The Motley Fool Stock Advisor analyst team does not include Nu Holdings in their top 10 stock picks, highlighting other investment opportunities. However, past recommendations like Netflix and Nvidia have generated substantial returns for investors. With Stock Advisor’s total average return outperforming the S&P 500, investors can explore different options for maximizing their investment portfolio.

Read more: Should You Buy Nu Holdings While It’s Still Below $15?