Nu Holdings (NU)
Up over 39% in this past year, we have rated NU highly multiple times over the past few years thanks to it’s stellar earnings growth and relatively low valuation. While at first glance it appears to have a fair valuation on it’s own at a 25 price to earnings multiple, that figure that begins to look extremely attractive when you factor in their EPS growth forecasts of +63% over the next 12 months. This gives Nu Holdings a fantastic PEG ratio of 0.4, which is significantly better than the broader S&P’s PEG ratio of around 1.8. At 0.4, this means the stock could still be a bargain even if it were to double in share price tomorrow as it would still have a PEG under 1 (0.8). And given that Nu holdings have met or beat it’s last 4 earnings calls I think its safe to say with confidence that they will be able to at least meet the 63% earnings growth that analysts are forecasting for the next year; further solidifying NU’s position as an incredibly attractive growth stock.
| NU | |
| Share Price | $15.34 |
| Earnings Per Share | $0.58 |
| EPS (Analyst Forward 1yr) | $0.95 |
| Price to Earnings | 26.4 |
| EPS Growth (Projected 1 yr) | 63.8% |
| PEG | 0.4 |
Nu Holdings has been able to increase their customer base by over 31% in the last quarter and revenue is up 37% last year. Its down 10% year to date which makes this a great time to get in or average down, particularly given that we expect this stock to hit $30 as early as July 2027 if they can meet their $1.12 Trailing Twelve Month EPS target by then (also assuming their price to earnings rises to 27 as confidence builds). This would mark a +96% increase in the next 16 months if we were to see this play out.
And it gets better for NU as they have the wind firmly to their back – the fintech industry itself is expected to enjoy a 25% Compound Annual Growth Rate (CAGR) out to 2033 by some estimates. We are also seeing hedge funds continue to buy more stock than they are selling which is indicative of their confidence in Nubank.
Analysts have rated Nu Holdings a Strong Buy with a one year average forecast of +44%. We put NU as a medium risk, high reward stock and have also rated it a Strong Buy with a +39% one year forecast for the end of 2026.
Topics: NU stock price prediction, NU stock analysis
