Nu Holdings Ltd.

Key Points
The market is approaching new highs again.
However, these promising growth stocks have yet to set new highs.
Although they haven't kept pace with the S&P 500 recently, these stocks offer investors market-beating potential over the long term.
Over the last few months, the S&P 500 has risen 24% from its 2025 low, and has begun setting new all-time highs.
This incredible ascension doesn't mean there are no enticingly priced stocks, though. Despite the market rebounding, many of the best growth stocks remain at least 10% below their highs. Here are 10 of my favorite growth stocks that are worth buying right now. (Numbers as of July 10, 2025.)
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1. Shopify: 33% below all-time highs
Shares of the United States' leading e-commerce enabler, Shopify (NASDAQ: SHOP), are down 33% from their 2021 peak as i write this.
However, in the four years since that high, sales have grown from $4 billion to over $9 billion, giving the company a much more palatable valuation.
Much as Amazon revolutionized e-commerce alongside the internet's boom, Shopify aims to reimagine the industry as artificial intelligence (AI) gains prominence.
In 2023, the company launched Shopify Magic, an AI-powered toolbox that generates product descriptions and marketing campaigns, edits photos, and automates customer support. Then in 2024 it launched Sidekick, which helps merchants gather business insights, optimize inventory, and set pricing strategies, among things.
These AI solutions reinforce Shopify's mission of simplifying entrepreneurship, and should help it stay the top dog in the global e-commerce industry.
Shopify still accounts for only 12% of the U.S. e-commerce industry -- and less than 2% in its core international geographies -- so it should still have decades of growth ahead.
2. Global-E Online: 59% below all-time highs
Whereas Shopify streamlines the e-commerce experience for merchants, Global-E Online (NASDAQ: GLBE) does so for crossborder sales. Selling products to someone in a different country is complicated, and Global-E's e-commerce platform alleviates these difficulties for its merchants.
The company enables sales to over 200 countries, offering pricing in 100 currencies along with 150 payment options. It also provides access to 20 shipping carriers, messaging in 30 languages, tariff calculations, and zero-risk payment fraud management.
Its operations are so complex that Shopify chose to partner with Global-E rather than try to help its merchants sell internationally on its own.
FedEx estimates that crossborder sales will grow twice as fast as regular e-commerce purchases through 2030. This fact, paired with Global-E's 30% revenue growth and improving margins, makes it a promising investment.
3. DLocal: 84% below all-time highs
DLocal (NASDAQ: DLO) also helps merchants sell to customers in foreign countries, processing payments in emerging markets. It helps improve merchants' conversion rates by offering 900 local payment options in 40 countries across Latin America, Africa, and Asia.
However, since the company went public in 2021, its net profit margin has slid from above 30% to 19%, which helps explain its dramatic share price drop.
This margin compression is the result of a short-term trade-off DLocal is making. Rather than demanding lofty "take rates" up front, it's getting its foot in the door with major customers, such as Amazon, Spotify, Uber, Shopify, and Netflix.
Now woven into its megacustomers' ecosystems, DLocal can start to offer higher-margin solutions over time, increasing the portion it takes as it provides value to them. Early results look promising: DLocal's total payment volume (TPV) retention rate hit 144% last quarter.
Trading at 23 times earnings, while growing TPV by 53%, DLocal could be a steal today.
4. Nu Holdings: 18% below all-time highs
Serving 99 million active customers across Brazil, Mexico, and Colombia -- a figure that grew by 16 million over the last year -- Nu Holdings (NYSE: NU) is becoming one of the largest digital banks in the world.
Aside from its robust 25% net profit margin, Nu's growth in average revenue per active customer (ARPAC) is what makes the bank so intriguing.
ARPAC one year after a customer joins the bank is $4.80. After two years, this rises to $6.80. But after eight years, the figure spikes to $25.90, highlighting how the bank grows alongside its customers.
Furthermore, while Nu already counts 58% of the adult Brazilian population as customers, this percentage is much lower in the company's nascent growth markets: It's only 12% in Mexico, and 8% in Colombia.
The combination of ARPAC growth, geographic expansion potential, solid margins, and acceptable delinquency ratios makes Nu Holdings a stellar growth stock.
5. Duolingo: 30% below all-time highs
After quadrupling in value since their 2021 initial public offering (IPO), shares of the world's largest language-learning app, Duolingo (NASDAQ: DUOL), have declined by 30%.
Seeing daily active user (DAU) growth slow from 56% in February to 37% in June, the market reined in Duolingo's lofty valuation. While it's now trading at a more reasonable 61 times forward earnings estimates (down from 90 a few days ago), the company's improving margins and promising growth options could outgrow this valuation.
Whether it adds new courses (such as math or chess), offers more standardized tests, expands its advertising business, or deploys new AI use cases (like video chats with the fan-favorite character Lily), Duolingo has a growth story still in its early chapters.
6. Wingstop: 23% below all-time highs
In January and February, I wrote about Wingstop (NASDAQ: WING) being one of my favorite growth stocks. The Buffalo wing franchiser's shares have since rallied from a bit over $200 per share to over $300. Yet the best may still be ahead.
Wingstop currently has 2,563 locations, but management believes it can raise this number to 10,000 globally. If that sounds far-fetched, consider that the company already has 1,955 stores in its development pipeline.
And Wingstop isn't a one-trick pony relying upon store-count expansion to grow. It has 21 consecutive years of same-store sales growth, including a 20% increase in 2024.
Yes, the stock looks expensive at 69 times cash flow from operations (CFO). However, it had a similar valuation at its IPO in 2015, and has since become a 15-bagger, so I'm optimistic about the future.
7. Dutch Bros: 25% below all-time highs
Dutch Bros (NYSE: BROS) is a burgeoning handcrafted-beverage chain with a cult-like following among its customers. Much as with Wingstop, a lot of the interest in the company's stock stems from its potential for store-count growth.
Although it's already 1,000 shops strong, over 50% of the company's locations are in just three states: Oregon, California, and Texas. As Dutch Bros expands further into the Midwest and Southeast, management believes it could reach 7,000 locations.
Now that the company has reached breakeven on what it generates in cash flow from operations versus what it spends building new stores each year, it could become a compounding machine.
Already lauded for customer service and value for customers, Dutch Bros should continue to appeal as it expands to new states.
8. UFP Technologies: 30% below all-time highs
UFP Technologies (NASDAQ: UFPT) is a contract development and manufacturing organization for 26 of the 30 largest medical device manufacturers.
With the design capabilities and materials expertise necessary to manufacture new polymer-based medical devices, UFP collaborates with medical device makers to create new products. UFP's shining example of this process was designing drapes for Intuitive Surgical's robots to "wear" during surgeries.
Targeting niche use cases like this, the company relies on its strategy as a serial acquirer to grow, scooping up new complementary technologies as it goes.
Since UFP gets to handpick which devices it collaborates on with its customers -- typically high-margin, single-use products -- I expect its multibagging ways to continue far into the future.
9. The Trade Desk: 46% below all-time highs
The Trade Desk (NASDAQ: TTD) is the largest ad-buying platform for the open internet. As a demand-side platform focused on transparency, The Trade Desk stands in stark contrast to the closed systems of Meta Platforms, Amazon, and Alphabet's Google.
But, after the company reported earnings earlier this year that missed expectations for the first time in 33 quarters, its share price got crushed.
While a 60% drop in share price is alarming, the dramatic sell-off likely had more to do with the company trading at over 100 times its free cash flow (FCF) than with any fundamental issues with the business.
For instance, GroupM expects the advertising industry to grow by 7% in 2025. Given The Trade Desk's 25% Q1 sales growth, it's evident that the company is continuing to expand its market share.
As The Trade Desk continues to target three high-growth areas -- connected TV, premium audio, and international markets -- it's likely to outgrow its current price-to-FCF ratio of 55.
10. ASML: 27% below all-time highs
One of the simplest ways to invest in the ongoing AI boom may be to buy lithography juggernaut ASML (NASDAQ: ASML).
Lithography is the near-magic process of using ultraviolet light to etch nanoscopic patterns onto silicon wafers, which are used in the world's most powerful semiconductor chips. What makes ASML so interesting is that it's far and away the leader in this process. It holds a market share of over 50% in more mature deep ultraviolet lithography, and a monopoly in extreme ultraviolet lithography -- the most advanced process.
Although ASML will always remain exposed to geopolitical risks and cyclicality throughout the semiconductor supply chain, its importance to its customers (and thus, its sales) should grow over the long term.
McKinsey & Company expects the $600 billion semiconductor industry to grow to $1 trillion by 2030 and surpass $2 trillion by 2040, so ASML's lithography machines should remain essential for years to come.
With shares trading below their 10-year average price-to-earnings (P/E) ratio of 37, now looks like a great time to consider buying the company responsible for powering the semiconductor industry.
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Josh Kohn-Lindquist has positions in ASML, Alphabet, DLocal, Duolingo, Dutch Bros, Global-E Online, Netflix, Nu Holdings, Shopify, The Trade Desk, Uber Technologies, UFP Technologies, and Wingstop. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, FedEx, Global-E Online, Intuitive Surgical, Meta Platforms, Netflix, Shopify, Spotify Technology, The Trade Desk, and Uber Technologies. The Motley Fool recommends DLocal, Duolingo, Dutch Bros, Nu Holdings, Ufp Technologies, and Wingstop and recommends the following options: long January 2027 $7 calls on DLocal and short January 2027 $10 calls on DLocal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

10 Growth Stocks Down 10% or More to Buy Right Now

MercadoLibre MELI has built its largest and most crucial market in Brazil, which now accounts for more than 50% of its total revenues. However, Trump’s 50% tariff on Brazilian imports has raised concerns. If the country’s economy takes a hit or the currency weakens, shoppers may cut back on spending, hurting MELI’s e-commerce and fintech growth in the region.
There’s also a chance Brazil could respond with its trade actions, which might raise costs or cause delays in deliveries. Since MELI relies on fast and efficient logistics, even small disruptions can impact its service and profits. The 50% tariff threat has added uncertainty, making investors question the stock’s short-term direction.
However, everything is not gloom and doom. S&P Global Ratings upgraded MercadoLibre to an investment-grade BBB rating, highlighting its strong business performance, improving profitability and careful financial management. It was noted that the company’s debt levels are expected to stay comfortably within safe limits. With the recent developments, investors may be wondering how to play the stock. Let’s delve deeper to know whether to buy, sell or hold the stock.
MELI Faces Stiff Competition Across All Segments
In fintech, MercadoLibre is facing rising pressure from Nubank NU, which hit nearly 100 million monthly active users in the first quarter of 2025. Nubank’s growth is fueled by low-cost digital banking and AI-driven credit models. With stronger user engagement and bundled services, Nubank is directly challenging MELI’s hold on payments and lending across Latin America.
In e-commerce and ads, Amazon AMZN and Sea Limited’s SE Shopee are expanding fast. Amazon is boosting its reach in Brazil and Mexico, strengthening logistics and ad tools for sellers. Shopee, backed by Sea Limited, is growing in Brazil with mobile-first, low-cost ad options. Both Amazon and Sea Limited are putting pressure on MELI’s dominance.
MELI Stock is Overvalued
MELI is trading at a premium compared to the broader Zacks Internet – Commerce industry. As of the latest data, MELI’s forward 12-month Price/Earnings ratio hovers around 40.79X, above the industry’s 25.86X.
The Value Score of D further reinforces an unattractive valuation for the stock at the moment.
MELI’s P/E F12M Ratio Depicts Premium Valuation
Image Source: Zacks Investment Research
MELI’s Share Price Movement
MELI shares have returned 13.2% over the past three months, underperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry’s growth of 14.3% and 26.4%, respectively.
The rise in MELI’s share price reflects its consistent financial performance and strong management, which have helped boost investor confidence. Backed by a solid liquidity position, the company continues to innovate and expand across its core segments. As of March 31, 2025, cash and cash equivalents were $2.98 billion and short-term investments were $741 million. Yet, the stock has lagged behind the broader industry and sector, reflecting investor wariness driven by mounting geopolitical risks and economic uncertainty in Brazil, its most critical market.
MELI’s 3 Months Price Performance
Image Source: Zacks Investment Research
MELI’s Earnings Estimate Revisions Show Steady Trend
The Zacks Consensus Estimate for 2025 earnings is pegged at $47.75 per share, which has remained unchanged over the past 30 days, indicating 26.69% year-over-year growth.
The consensus mark for 2025 revenues is pegged at $27.35 billion, suggesting 31.66% year-over-year growth.
MercadoLibre’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise of 22.59%.
MercadoLibre, Inc. Price and Consensus
Mercado Ads Poised to Power MELI’s Next Phase
MercadoLibre is doubling down on digital advertising, aiming to make Mercado Ads a major growth engine. The platform helps sellers and brands reach millions using first-party data across Product, Brand, Display and Video Ads. With new features like automated creative tools and enhanced analytics, ad adoption is expected to rise.
The launch of Mercado Play, MELI’s free streaming app on more than 70 million smart TVs, adds a powerful video layer to its ad ecosystem. By tapping into Latin America’s large base of non-paying streamers, MELI is unlocking fresh ad inventory and deepening engagement beyond commerce. These efforts are set to boost engagement, attract more ad spend and drive long-term revenue growth for MELI.
MELI Applies for Banking License in Argentina
Mercado Pago, MELI’s financial arm, has announced plans to apply for a banking license from Argentina’s Central Bank as part of its broader push to expand digital banking services across Latin America. Already active in Brazil and Mexico, this move supports its mission to build the region’s largest digital bank.
The license will help offer more products, improve user experience and maintain its 100% digital model. Mercado Pago has already transformed financial access in Argentina, enabling millions to save, pay, invest and get credit. The license is expected to boost top-line growth through expanded services.
MELI Stock: Buy, Sell or Hold?
Given the mixed signals, a hold stance for MELI stock appears prudent for now. While near-term risks like tariff uncertainty and rising competition may weigh on sentiment, MercadoLibre’s long-term story remains strong. The company is expanding into digital banking and advertising, both of which offer meaningful growth potential. Its solid credit rating and focus on innovation suggest resilience. Valuation is stretched, but steady revenue and profit growth projections offer support. Investors may want to wait for a better entry point while keeping an eye on macro developments in Brazil and execution across new verticals.
MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Should You Buy, Sell or Hold MELI Stock After Trump's Tariff Pledge?

Nu Holdings (NYSE: NU) shares rose 3.6% today, closing at $13.54 after trading between $13.12 and $13.54 during the day. The fintech company's stock rallied amid growing analyst confidence, with several Wall Street firms raising their price targets modestly over the past week. The consensus view appears increasingly optimistic about Nu's execution in the competitive Latin American digital banking space.
The stock outperformed both the Nasdaq Composite, up 0.18%, and the S&P 500's 0.4% drop, with trading volume coming in at approximately 123 million shares -- double the 50-day average of 84.5 million.
Industry peers also showed gains, In the competitive landscape, Inter & Co (NASDAQ: INTR) rose 4% to $7.05, trading between $6.80 and $7.06, showing similar strength following recent earnings and supportive central bank signals for digital lenders. Meanwhile, StoneCo (NASDAQ: STNE) declined 2% to $14.87 despite the year's broader tech momentum.
Despite today's gains, Nu stock still trades 16% below its 52-week high of around $16.14, though the trend has distinctly shifted upward as analyst sentiment improves. The favorable reassessments appear driven by Nu's accelerating user metrics and promising early results from its credit card and loan offerings in new Latin American markets, potentially setting the stage for further price target revisions if execution remains strong.
Should you invest $1,000 in Nu Holdings right now?
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*
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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends StoneCo. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market Today: Nu Holdings Rises on Fresh Analyst Optimism

Nu Holdings Ltd. NU is quietly rewriting the digital banking playbook in Latin America, and its ARPAC (Average Revenue Per Active Customer) is proof. At $11.20 per month, NU’s ARPAC might seem modest next to U.S. fintech giants, but context is everything. This figure is not just growing, it’s accelerating in a cost-efficient operating model that’s difficult to match.
NU’s ultra-low cost to serve means that even relatively low per-user revenue can scale into strong margins. More importantly, that $11.20 is only an average; legacy users are already generating $25+ monthly. That’s the key: NU isn’t just acquiring users; it’s converting them into fully engaged, multi-product customers.
What starts as a simple digital banking relationship — maybe just a credit card or savings account — often grows into something deeper. As customers begin to trust the platform, they adopt more services: personal loans, investment products and even insurance. This cross-sell dynamic is where the magic happens.
The growth in ARPAC isn’t just about charging more; it’s about customers voluntarily deepening their financial relationship with NU. And that makes the business model highly sticky. Each additional product increases customer lifetime value, reduces churn risk, and enhances profitability without ballooning service costs.
In short, NU’s ARPAC evolution isn’t just a metric — it’s a window into the company’s ability to turn low-income, first-time digital banking customers into loyal, high-value users. That compounding effect is a long-term investor’s dream, and it signals NU is not only gaining traction but building durable financial habits across a previously underserved population.
Peers: XYZ and MercadoLibre Riding the Fintech Wave
Block, Inc. XYZ is a standout in digital finance, driven by the strength of its Cash App ecosystem. Like NU, Block is focused on deepening user engagement across payments, investing, and even Bitcoin services. With increasing monetization per user, Block is building long-term financial relationships efficiently.
MercadoLibre MELI, Latin America’s e-commerce and fintech giant, continues to scale its Mercado Pago offering. The company is growing digital payments and consumer credit across the region — a trajectory similar to NU.
Both XYZ and MercadoLibre reflect NU’s peer set of high-growth, ecosystem-centric fintech disruptors.
NU’s Price Performance, Valuation, Estimates
The stock has surged 28% year to date, significantly underperforming the industry’s 26% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 20.21, which is well above the industry’s 9.36. It carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NU’s second-quarter 2025 earnings has declined over the past 60 days.
Image Source: Zacks Investment Research
NU stock currently carries a Zacks Rank #3 (Hold).
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NU's ARPAC Shows Compounding Power of Customer Stickiness

Both Nu Holdings NU and Dave DAVE are major players in the digital financial services sector. NU is a prominent digital bank serving more than 118 million customers across Brazil, Colombia and Mexico. DAVE is a U.S.-based financial services platform offering an array of financial products, including ExtraCash and Dave Banking.
This comparative analysis helps investors develop their strategy to choose between these two stocks, allowing them to gain exposure in the fintech space. In conclusion, this analysis aims to make it easier for investors to decide which stock to support right now.
The Case for Nu Holdings
NU is emerging as a formidable player within the fintech space. With 19% year-over-year growth in new customers in the first quarter of 2025 and nearly 100 million active users, the company is confident that it can scale rapidly without compromising its potential to generate revenues. Nu Holdings derives this growth momentum from its expansion in Brazil, where nearly 59% of the adult population is its customers. This ascent underscores the company’s success in tapping into a previously underbanked population.
From a financial perspective, NU’s performance was exceptional in the quarter ending in March. First, the top line grew 40% year over year, with net income increasing 74% from the previous year. Monthly average revenues per active customer rose 5% from the previous quarter and 17% year over year on a FX-neutral basis, highlighting the company’s strong potential for long-term monetization.
Furthermore, the 15-90 NPL ratio increases by 60 basis points (bps), reflecting the continued strength of NU’s underwriting and effective risk management strategy.
There is no denying the fact that the company’s astounding performance was further bolstered by NU’s expansion in Mexico. Nubank Mexico witnessed a 67% year-over-year increase in the customer base to 11 million.
That being said, the company obtained regulatory approval for its banking license in April, which unlocks product capabilities, boosts the ability to scale deposits and reinforces its long-term mission to drive financial inclusion. In doing so, we can expect NU to reap benefits exponentially not only from Brazil but also from Mexico, aiding its growth trajectory. We expect Nu Holdings to capture a greater market share as the Latin American fintech market grows, seeing an 8% CAGR from 2025 to 2030.
The Case for Dave
DAVE is one of the leading neobanks in the United States that has distinguished itself by providing services like ExtraCash. With the fee structure being revised, ExtraCash has become more popular among the masses, driving the growth narrative of the company. In the first quarter of 2025, DAVE witnessed 46% growth in its ExtraCash originations, which had a positive impact on average revenues per user, as it increased 29% year over year
Moving on, the company’s financial position got solidified as the top line rallied 47% year over year. Adjusted EBITDA skyrocketed 235% year over year, which was certainly impressive, underscoring the company’s robust operating leverage. With the addition of 569,000 members, Dave registered 15% year-over-year growth in its member base, a testament to its growing demand for its offerings.
DAVE’s ability to manage credit risk separates it from the rest. By utilizing CashAI, a proprietary underwriting engine, the company improved its credit performance significantly. It witnessed an 18% year-over-year enhancement in the 28-day delinquency rate and a reduction in the percentage of provision for credit losses to originations to 0.69% from the year-ago quarter’s 0.94%.
CashAI’s ability to improve cost management had a distinct influence on Dave’s profitability position. It led to a 67% year-over-year surge in non-GAAP variable profit, with variable margin growing 950 bps.
Dave’s sole focus on the U.S. market hinders its means of diversification. This provides the company with a bedrock of motive to expand into different markets. With the global fintech market anticipated to grow, witnessing a healthy 15.3% CAGR from 2025 to 2030, DAVE is presented with a massive opportunity to capture a larger market share.
How Do Estimates Compare for NU & DAVE?
The Zacks Consensus Estimate for Nu Holdings’ 2025 sales is pegged at $14.8 billion, hinting at 28.5% year-over-year growth. The consensus estimate for earnings is pegged at 54 cents, suggesting a 20% rise from the preceding year’s actual. One earnings estimate for 2025 has moved north in the past 60 days, versus two southward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dave’s 2025 sales is pegged at $474.4 million, indicating 36.7% year-over-year growth. The consensus estimate for earnings is $8.74 per share, suggesting a 66.8% year-over-year surge. Two earnings estimates for 2025 have moved north in the past 60 days, versus no southward revisions.
Image Source: Zacks Investment Research
NU Trades Cheaper Than DAVE
Nu Holdings is currently trading at a forward 12-month P/E ratio of 20.21X, which is slightly below the 12-month median of 20.71X. Dave is trading at 24.64X, substantially lower than the 12-month median of 33.74X. Although both stocks are trading at a discount compared with their historical valuations, NU appears much cheaper than DAVE.
Image Source: Zacks Investment Research
Dave is a “Buy,” driven by ExtraCash’s product improvements and popularity, strong operating leverage and advanced credit risk management with CashAI. While the company focuses on the U.S. market, the growing global fintech landscape positions it to capture a larger market share.
Although Nu Holdings presents a strong case, we urge investors to take a cautious approach and refrain from adding it to their portfolios. Our recommendation for NU is based on its top and bottom-line outlook, which is weaker than that of DAVE and its downward earnings estimates revision, hinting at a lack of analyst confidence.
DAVE flaunts a Zacks Rank #1 (Strong Buy) and NU has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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NU vs. DAVE: Which Fintech Stock Should Investors Back Right Now?

Financial technology and digital banking took the United States by storm in the last few decades. Now, the same trend is happening in Latin America, and it is being dominated by one company: Nu Holdings (NYSE: NU). The online and mobile-focused bank is capturing tens of millions of new customers to join its service in Brazil, Mexico, and Colombia, disrupting stodgy legacy financial institutions with a better customer experience.
Nu Holdings, otherwise called Nu Bank, has grown at an incredible pace in these emerging markets. Yet the stock is barely higher than it was at its IPO in late 2021. Here's why the stock is a buy before its next earnings report on Aug. 14.
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Growing usage in Brazil
Nu Bank began its journey in Brazil in 2013 by launching an online-only bank with an easy-to-use smartphone application. Compared to the existing banks in the country, with their terrible customer experiences and high-interest-rate loans, Nu Bank was a sight for sore eyes, leading to rapid adoption in the nation. From 2013 to today, Nu Bank has gone from a standing start to over 100 million accounts in Brazil, or over half of the population.
In Brazil, Nu Bank's annual revenue will likely pass $10 billon this year. But the company is just getting started in the nation. It has a major plan to keep upselling its banking, lending, payment card, and investing products to active customers. The company's average revenue per active customer is $11.20 a month. Its earlier customers are now at much higher levels, and compared to incumbent institutions with an average monthly revenue per customer of over $40, Nu Bank has just barely cracked the surface of its revenue-generating potential in its home market.
At $10 billion in revenue today, Nu Holdings has a chance to double or even triple its total annual sales in Brazil, even if it doesn't grow its customer count again. That is a nice place to be in as a business, innovating while the legacy banks keep their inferior business models.
Rapid expansion in Mexico
Brazil is starting to mature as a market for Nu Bank. That's not so much the case in Mexico, where the company has 11 million customers in a total population of approximately 130 million. With a similar situation to Brazil, where incumbent players have stodgy systems that frustrate customers, Nu Bank has the green light to steal market share in Mexico. It just received its official banking license to operate in Mexico, which will give it full lending and banking capabilities to offer its clients.
Average revenue per active customer is lower in Mexico than in Brazil, and Nu is still in the early innings of adding new customers to the platform. This combination should enable Nu Bank to grow revenue in Mexico for many years. Compared to just under $700 million in trailing revenue today, I wouldn't be surprised if Mexico becomes a $10 billion annual revenue business for Nu.
The company is not stopping in just these two countries. It has entered the Colombian market, with management hinting that it plans to expand to other countries -- likely Argentina, Chile, and Uruguay -- within the next few years. While Colombia has lower revenue today and is a poorer country economically than Brazil or Mexico, the potential of the rest of Latin America is another positive spot for Nu Bank's mission to try to bring modern digital banking to the masses.
Why Nu Holdings stock is a buy
Nu is not only a fast-growing company, it's also highly profitable. It generated a return on equity (ROE) of close to 30% over the last 12 months, which is an important metric for banking that measures the net earnings the business generates compared to its equity base, a measure of profit efficiency. A ROE of 30% is highly impressive for Nu Bank, especially when you consider that the company is still reinvesting heavily to grow. If it stopped its aggressive market and product expansion, the company would likely be generating an even higher ROE.
So what does Nu Bank earn? Over the last 12 months, its net income was $2.15 billion, giving the stock a trailing price-to-earnings ratio (P/E) of 30. A P/E at this level may seem high for a bank, but few banks are growing as fast as Nu Bank. Last quarter, top-line revenue grew 19% year over year, with plenty of room to continue growing in Brazil, Mexico, and Colombia, let alone any new markets that Nu Bank enters in the future. Earnings should grow even faster than revenue as the company gains more economies of scale and stops spending so much money acquiring new customers.
Add it all up, and I think Nu Holdings' P/E can fall rapidly to a dirt cheap level, making the stock one to buy and hold before its upcoming earnings report in August and hold for the long term.
Should you invest $1,000 in Nu Holdings right now?
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Nu Holdings Stock Is a Buy Before Aug. 14

American investors might not be too familiar with Nu Holdings (NYSE: NU). True, it's a large-cap company with a $65 billion market capitalization currently. And yes, Warren Buffett's Berkshire Hathaway owned a stake in it for about three years. But because it operates in Latin America, Nu probably flies under the radar for many here in the U.S.
This fintech stock has soared by an impressive 230% in the past three years (as of June 25), although it has taken investors on a volatile ride along the way. But should you buy shares right now while they trade below $15?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Nu continues to grow at a brisk pace
Because of how mature the financial services industry is, there aren't that many companies in the space that are rapidly rising up through its ranks. Here's where Nu stands out. Its leaders saw an opportunity to target unbanked and underbanked populations in Latin America, providing them with a digital-first platform that offers bank accounts, brokerage services, credit cards, loans, and crypto trading, among other things.
As of March 31, Nu had 119 million customers, the vast majority of them in its home market of Brazil. The company now counts a remarkable 59% of that country's adult population as its customers. In the last three years, Nu has essentially doubled its customer base.
Nu also operates in Mexico and Colombia, both markets that have sizable potential. Combined, they have a population of 185 million people -- 13 times greater than the number of customers Nu has attracted so far in those countries.
The leadership team is optimistic. According to their estimates, Nu has only captured 5% of its gross profit total addressable market in Brazil. One key pillar of its growth playbook is to constantly innovate. Nu just launched a service offering private payroll loans in Brazil, taking on the established players in that part of the industry.
It also has a travel service (NuTravel) and a mobile phone service (NuCel). These initiatives clearly show its willingness to venture beyond financial services. It might have plans to enter other new markets down the road, further expanding revenue potential. However, so far, executives are playing it close to the vest.
Sensitive to external forces
Because Nu's growth has been so spectacular, investors might overlook the fact that this is still a bank at its core. And that means that Nu is heavily exposed to certain factors outside of its control.
Interest rates are one thing to keep in mind. No one can reliably predict with any level of precision what direction interest rates are headed in over the longer term. But rate hikes and cuts can have profound impacts on Nu's revenue and earnings. A recession or economic downturn would also spell trouble for the bank, as demand for loans would fall, delinquencies would rise, and spending activity would take a hit.
Nu's operations are entirely in Latin America, which is still a developing region. On the one hand, that's an advantage, as it provides Nu with a huge opportunity to expand its offerings, bring on new customers, and ride the wave of GDP growth and smartphone/internet penetration.
On the other hand, developing economies are prone to volatility. For instance, Brazil's economy is dependent on commodity exports, which can be influenced by market prices that can negatively impact GDP. There are other issues as well, like political instability and corruption. These elements can make running a successful financial services enterprise difficult.
Nonetheless, Nu has performed exceptionally well in the face of these ongoing risks. Its revenues have soared, and so have its profits. Diluted earnings per share jumped 47% year over year in Q1, and analysts are forecasting that this key metric will increase at an annualized pace of 36% between 2024 and 2027.
With shares trading at a forward P/E ratio of 23.5, investors should consider buying this fintech stock while it's still below $15.
Should you invest $1,000 in Nu Holdings right now?
Before you buy stock in Nu Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nu Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*
Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of June 23, 2025
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Nu Holdings While It's Still Below $15?

Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core MSCI Emerging Markets ETF, which added 33,000,000 units, or a 2.1% increase week over week. Among the largest underlying components of IEMG, in morning trading today PDD Holdings is off about 2.5%, and NU Holdings is higher by about 0.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the Calamos Nasdaq - 100 Structured Alt Protection ETF - June, which added 500,000 units, for a 38.5% increase in outstanding units.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IEMG, CPNJ: Big ETF Inflows

Investors interested in stocks from the Mining - Gold sector have probably already heard of Eldorado Gold Corporation (EGO) and Agnico Eagle Mines (AEM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Eldorado Gold Corporation and Agnico Eagle Mines are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EGO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EGO currently has a forward P/E ratio of 12.65, while AEM has a forward P/E of 20.01. We also note that EGO has a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AEM currently has a PEG ratio of 1.05.
Another notable valuation metric for EGO is its P/B ratio of 1.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AEM has a P/B of 2.81.
Based on these metrics and many more, EGO holds a Value grade of A, while AEM has a Value grade of C.
EGO has seen stronger estimate revision activity and sports more attractive valuation metrics than AEM, so it seems like value investors will conclude that EGO is the superior option right now.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EGO or AEM: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Kerry Group PLC (KRYAY) or Mondelez (MDLZ). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Kerry Group PLC and Mondelez are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KRYAY currently has a forward P/E ratio of 20.13, while MDLZ has a forward P/E of 22.59. We also note that KRYAY has a PEG ratio of 1.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MDLZ currently has a PEG ratio of 5.29.
Another notable valuation metric for KRYAY is its P/B ratio of 2.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MDLZ has a P/B of 3.43.
These metrics, and several others, help KRYAY earn a Value grade of B, while MDLZ has been given a Value grade of C.
Both KRYAY and MDLZ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KRYAY is the superior value option right now.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.