Nu Holdings (NYSE: NU) has outperformed the S&P 500 with a 50% stock rally in the past year. It continues to grow its customer base, revenue, and earnings while maintaining reasonable valuations. NuBank, its digital-only direct bank, doubled its customer base from 53.9 million to 127.0 million from 2021 to 2025, with an 83% activity rate.

Despite some headwinds like currency fluctuations and new investments, Nu’s revenue growth stabilized and accelerated in Q3 2025. Its average revenue per active customer nearly tripled to $13.40, while maintaining a flat monthly cost per active customer at $0.90. The company turned profitable in 2023 and saw a 89% revenue CAGR from 2021 to 2024.

Nu’s gross and net interest margins dipped due to expansion in Mexico and Colombia, impacting net income growth. However, with a new banking license in Mexico and pending license in Brazil, Nu aims to comply with regulations and expand services. Analysts expect a 36% revenue and 46% EPS growth for the full year, with a 30% and 37% CAGR from 2025 to 2027.

Nu’s stock may be undervalued at $17, trading at 20 times next year’s earnings. The company’s growth potential is supported by its expansion plans and new licenses. Investing in Nu ahead of its fourth-quarter earnings report in February could be beneficial for long-term growth. Consider the company’s potential against its competitors and evolving market conditions.

Read more at Nasdaq: Should You Buy Nu Holdings (NU) Stock Before February?