Nu Holdings stock has surged 62% in 2025 and 364% over the past three years as of January 12, according to recent market data. The fintech company, which operates exclusively in Latin America, reported significant financial and customer growth in its latest quarterly results.
Revenue increased 42% year over year in the third quarter of 2025, which ended on September 30. Wall Street analysts project the company's top line will grow 31% in 2026. Nu Holdings ended the third quarter with 127 million customers, up from 70 million three years earlier.
The company's main market is Brazil, where 60% of the adult population are Nu customers. Its services are also available in Mexico and Colombia, newer markets that have shown early success. Latin America has a high population of unbanked and underbanked citizens, with improving smartphone and internet penetration noted as factors in the company's potential.
Despite the stock's rise, Nu Holdings trades at a forward price-to-earnings ratio of 21.8, below the S&P 500's multiple of 22.4. Analysts expect earnings per share to increase 42% between 2025 and 2026, attributed to the company's scalable digital banking model that avoids physical branch costs.
The Motley Fool Stock Advisor analyst team identified what they believe are the 10 best stocks for investors to buy now, and Nu Holdings was not among them. The team highlighted that the 10 selected stocks could produce significant returns, citing examples like Netflix and Nvidia from past recommendations. Stock Advisor's total average return is 955%, compared to 196% for the S&P 500, as of January 15, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings.