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Nu Holdings Ltd. (NYSE:NU) stock rose in Wednesday’s premarket trading after UBS raised its price forecast for the Brazilian digital bank.

UBS analyst Thiago Batista maintained a Buy rating and raised his price forecast from $18.20 to $20.50 on Tuesday.

Broader market sentiment was also positive. Nasdaq futures gained about 0.5%, while S&P 500 futures rose 0.09%.

Brazil Election Adds Uncertainty Ahead of RunoffInvestors are also watching Brazil’s presidential election as the country prepares for an Oct. 25 runoff between Sen. Flávio Bolsonaro and incumbent President Luiz Inácio Lula da Silva. Bolsonaro’s lead over Lula has narrowed in recent polls, Reuters reported Monday.

Bolsonaro’s campaign has pledged to strengthen fiscal discipline, improve public-sector efficiency and create conditions for stronger economic growth. The election could influence Brazil’s economic policies, interest rates and consumer lending conditions.

Brazil remains Nu’s largest market. As a result, changes in the country’s economic outlook could affect the bank’s lending business, profitability and investor sentiment.

Nu Rejects Monzo Deal, Focuses on Global ExpansionMeanwhile, Nu confirmed Sept. 30 that it was not pursuing a transaction with British digital bank Monzo.

Earlier in September, Sky News reported that the companies had held preliminary discussions about a potential deal valued at 8 billion to 10 billion British pounds.

Nu shares declined following the report. The company said it remains focused on expanding its core operations in Brazil, Mexico and Colombia.

Nu is also pursuing international growth through Nu Global, including its expansion into the United States. In September, the company announced its U.S. expansion plans, marking another step toward building a global digital banking platform.

Technical Analysis: Nu Stock Holds Above Key Moving AveragesNu shares are trading above their 20-day simple moving average (SMA) of $14.40 and 50-day SMA of $14.49.

The stock is also above its 100-day SMA of $13.91 and 200-day SMA of $14.62. These levels suggest improving momentum, although longer-term technical signals remain mixed.

The 20-day SMA remains below the 50-day SMA. Meanwhile, the 50-day SMA remains below the 200-day SMA following a death cross in April.

The relative strength index (RSI) stands at 54.99, indicating neutral momentum. The stock is neither overbought nor oversold. Key technical levels include:

Resistance: $16, a nearby psychological level that could limit further gains. Support: $13, an area where buyers previously stepped in. Earnings Outlook and Wall Street RatingsNu is scheduled to report quarterly earnings Nov. 12.

Analysts expect earnings of 23 cents per share, up from 17 cents a year earlier. Revenue is projected to reach $5.69 billion, compared with $4.17 billion in the year-ago quarter.

The stock trades at a price-to-earnings ratio of 20.6, reflecting investor expectations for continued earnings growth.

Nu carries a Buy consensus rating, with an average price forecast of $17.06. Recent analyst actions include:

UBS: Maintained Buy and raised its price forecast from $18.20 to $20.50 on Oct. 20. JPMorgan: Maintained Overweight and raised its price forecast from $20 to $23 on Oct. 6. Needham: Maintained Buy with a $19 price forecast on Sept. 28. NU Price Action: Nu Holdings shares gained 0.53% to $15.17 in Wednesday’s premarket trading, according to Benzinga Pro.

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First Citizens Bank & Trust Co. acquired a new position in shares of Nu Holdings Ltd. (NYSE:NU – Free Report) in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 61,974 shares of the company’s stock, valued at approximately $785,000.

Several other hedge funds also recently modified their holdings of the company. Dimensional Fund Advisors LP grew its holdings in shares of NU by 990.3% during the first quarter. Dimensional Fund Advisors LP now owns 298,789 shares of the company’s stock worth $4,294,000 after purchasing an additional 271,385 shares during the last quarter. Handelsbanken Fonder AB increased its stake in shares of NU by 5.6% in the second quarter. Handelsbanken Fonder AB now owns 2,770,572 shares of the company’s stock valued at $37,015,000 after buying an additional 146,764 shares in the last quarter. C WorldWide Group Holding A S raised its holdings in shares of NU by 1,188.4% in the second quarter. C WorldWide Group Holding A S now owns 4,973,457 shares of the company’s stock valued at $66,445,000 after buying an additional 4,587,432 shares during the last quarter. Groupe la Francaise raised its holdings in shares of NU by 50.2% in the second quarter. Groupe la Francaise now owns 872,703 shares of the company’s stock valued at $11,670,000 after buying an additional 291,553 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of NU by 8.9% in the first quarter. The Manufacturers Life Insurance Company now owns 904,485 shares of the company’s stock valued at $12,997,000 after buying an additional 73,818 shares during the last quarter. Institutional investors and hedge funds own 84.02% of the company’s stock.

Insider Buying and Selling at NU In other news, CEO Cristina Junqueira sold 25,000 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $15.01, for a total value of $375,250.00. Following the transaction, the chief executive officer owned 4,877,593 shares of the company’s stock, valued at $73,212,670.93. This represents a 0.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the firm’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $15.81, for a total value of $3,505,187.67. Following the completion of the transaction, the insider owned 979,446 shares in the company, valued at $15,485,041.26. This represents a 18.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 386,707 shares of company stock valued at $6,001,588 in the last quarter. Corporate insiders own 1.20% of the company’s stock.

NU Stock Down 1.0% Shares of NYSE NU opened at $14.58 on Friday. Nu Holdings Ltd. has a 1 year low of $11.20 and a 1 year high of $18.98. The firm’s 50-day moving average is $14.49 and its 200-day moving average is $13.93. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $70.78 billion, a PE ratio of 19.70, a price-to-earnings-growth ratio of 0.60 and a beta of 0.95. NU (NYSE:NU – Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The company reported $0.22 earnings per share for the quarter. NU had a net margin of 18.65% and a return on equity of 31.59%. The business had revenue of $5.88 billion during the quarter. Equities analysts expect that Nu Holdings Ltd. will post 0.86 EPS for the current year.

Analyst Ratings Changes NU has been the topic of a number of research analyst reports. JPMorgan Chase & Co. increased their price objective on shares of NU from $20.00 to $23.00 and gave the stock an “overweight” rating in a report on Tuesday, October 6th. Needham & Company LLC reaffirmed a “buy” rating and issued a $19.00 target price on shares of NU in a research note on Monday, September 28th. Weiss Ratings lowered shares of NU from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, August 21st. Itau BBA Securities lowered shares of NU from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $20.00 to $18.00 in a research report on Wednesday, September 16th. Finally, Wolfe Research decreased their price target on shares of NU from $18.00 to $17.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Nine analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.94.

Get Our Latest Stock Analysis on NU

About NU (Free Report)

Nu Holdings Ltd., operating under the Nubank brand, is a digital financial services company that provides banking and payment products primarily through mobile applications. The company offers digital accounts, credit cards, personal loans, payment services, investment products and insurance, serving consumers and small businesses.

Nubank was founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible with the goal of expanding access to simpler, lower-cost financial services through technology.

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Nu Holdings Ltd. (NU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned +8.1%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Banks - Foreign industry, which Nu falls in, has lost 6.4%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Nu is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +35.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $0.86 points to a change of +38.7% from the prior year. Over the last 30 days, this estimate has changed -0.2%.

For the next fiscal year, the consensus earnings estimate of $1.16 indicates a change of +34.9% from what Nu is expected to report a year ago. Over the past month, the estimate has changed -0.3%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Nu , the consensus sales estimate of $5.73 billion for the current quarter points to a year-over-year change of +37.3%. The $22.51 billion and $27.93 billion estimates for the current and next fiscal years indicate changes of +42.7% and +24.1%, respectively.

Last Reported Results and Surprise HistoryNu reported revenues of $5.51 billion in the last reported quarter, representing a year-over-year change of +50.3%. EPS of $0.22 for the same period compares with $0.14 a year ago.

Compared to the Zacks Consensus Estimate of $5.45 billion, the reported revenues represent a surprise of +1.08%. The EPS surprise was +10%.

Over the last four quarters, Nu surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Nu is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Nu Holdings remains a strong buy as management pursues bold global expansion beyond Latin America, despite recent market volatility. NU's disciplined, customer-focused strategy enabled it to dominate Brazil and rapidly scale in Mexico and Colombia, now serving over 140 million customers. Recent U.S. product launch, Monzo acquisition rumors, and leadership changes in Mexico have heightened investor concerns about expansion risks.

Perpetual Ltd cut its position in shares of Nu Holdings Ltd. (NYSE: NU) by 53.2% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 3,319,585 shares of the company's stock after selling 3,774,787 shares during the quarter. Perpetual Ltd

Nu Holdings (NU -0.50%) has become one of the most interesting financial companies in the world. The digital bank now serves nearly 139 million customers across Brazil, Mexico, and Colombia. In the second quarter of 2026, it generated $1.1 billion in net income, its first quarterly profit above $1 billion.

But investors don't need to follow dozens of financial metrics to understand whether the business is moving in the right direction. If I could track just three numbers, they would be average revenue per active customer (ARPAC), return on equity, and credit quality.

Together, they tell us whether Nu Holdings is making its customers more valuable, generating attractive returns, and keeping its biggest risk under control.

Image source: Getty Images.

1. Average revenue per active customer (ARPAC)
In simple terms, ARPAC indicates how much revenue Nu Holdings generates per active customer per month. In the second quarter, ARPAC reached approximately $17, up from $13 a year earlier and roughly $8 in the second quarter of 2022. Why does this matter?

Well, imagine Nu Holdings has 100 customers. If each customer generates only $5 of monthly revenue, adding more customers is helpful. But the economics become much more interesting if those same customers eventually generate $10 or $15 in revenue, since the company can save on customer acquisition costs.

That is what makes ARPAC so important. Nu Holdings doesn't necessarily need another 100 million customers to significantly grow its earnings. It can also increase revenue from its existing customers and gain operating leverage.

In other words, as customers become more active and adopt additional products -- such as loans, savings, payments, and investments -- their economic value will increase. For investors, I'd watch whether ARPAC continues to rise over the next several years.

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2. Return on equity (ROE)
The second number is return on equity (ROE). This sounds complicated, but the basic idea is simple: A bank needs shareholders' capital to operate. ROE tells us how much profit the company generates relative to the capital it uses. Think of it as a measure of how efficiently management is using shareholders' money.

Nu Holdings generated a 33% ROE in the second quarter (annualized), up from 28% a year earlier. That is important because rapid growth by itself isn't necessarily valuable. A company could double its loan book and revenue while requiring substantial additional capital. If returns remain low, shareholders may not benefit much.

Nu is showing something different. It is growing rapidly while currently generating very high returns on capital. The question now is whether Nu Holdings can maintain an attractive ROE as the business grows significantly over the next few years.

3. 90+ non-performing loan (NPL) ratio
The third number is the least exciting, but potentially the most important. It is the percentage of loans that are more than 90 days past due, known as the 90+ non-performing loan, or NPL, ratio.

Why should investors care? Because lending is one of Nu's biggest businesses. Its credit portfolio reached $39.4 billion in the second quarter of 2026, up from $27.3 billion a year earlier. When a bank lends money, some customers inevitably don't repay their loans. If those losses become too large, they can wipe out a significant portion of the profits generated by lending.

Nu Holdings' 90+ NPL ratio was 6.9% in the second quarter, compared with 6.5% in the first quarter. The company said the quarterly increase largely reflected the seasonal migration of earlier delinquencies. The faster Nu Holdings grows its lending business, the more important it becomes to prove that it can control credit losses. That's why 90+ NPL ratio is a number worth watching closely.

What does it mean for investors?
ARPAC tells us whether customers are becoming more valuable. ROE tells us whether Nu Holdings is turning capital into profits efficiently. 90+ NPL ratio tells us how much credit risk sits behind those profits. We want the first two numbers to remain strong while the third stays under control.

This is particularly important, as the company has already proven that it can attract customers at an extraordinary scale. Now investors need to see whether it can continue to make those customers more valuable without taking excessive credit risk.

If it can, the $1 billion quarterly profit milestone may eventually look much less impressive than what comes next.

Key Takeaways Nu Holdings surged 23.1% in October, fueled by Brazil's political optimism and strong earnings growth.NU's Q2 net income jumped 49% to $1.1 billion, while its customer base reached 139 million.NU trades below peers on forward sales, but rising delinquencies and U.S. expansion costs pose risks. October's sharp rebound in Nu Holdings Ltd. (NU - Free Report) reflects more than enthusiasm for digital banking. Investors are reassessing Brazil's political outlook just as the company broadens its financial services business. That combination has lifted expectations, making the durability of Nu's growth an important question.

So far in October, NU shares rose approximately 23.1%. Over the same period, SoFi Technologies (SOFI - Free Report) slipped 0.4%, while Chime Financial (CHYM - Free Report) gained 4.8%. Nu Holdings alone jumped 13% on Oct. 5, after Brazil's first-round presidential vote raised investor hopes for a more market-friendly economic direction.

The rally also follows NU's first billion-dollar quarterly profit and its September launch in the United States. Both developments point to a business that is expanding beyond its original Brazilian credit-card offering. Still, currency movements, lending risks and the costs of entering new markets could influence how much of the recent optimism translates into lasting returns.

Image Source: Zacks Investment Research

Customer Engagement and Profitability Support NU’s GrowthNU's second-quarter results showed that customer growth is turning into stronger earnings. The company served 139 million customers, and its monthly activity rate climbed to 83.5%. Average monthly revenue per active customer reached $17. Gross revenues increased 39% year over year on a currency-neutral basis to nearly $5.9 billion, while net income climbed 49% to $1.1 billion. An efficiency ratio of 19.5% also suggests that Nu Holdings is preserving its low-cost model despite continued investment.

In Brazil, which accounts for nearly 118 million customers, the opportunity increasingly lies in deepening existing relationships. The company introduced Croma in July to offer tailored services to customers between its mass-market and higher-income segments. Mexico offers another route to growth: its banking launch in August supports a broader range of products and stronger primary banking relationships. Both initiatives could raise revenue per customer without requiring user additions to maintain their earlier pace.

NU's NuFormer platform is another part of that strategy. It supports credit decisions and customer service, with AI agents handling more than 60% of support conversations in Brazil. Better data may improve efficiency and loan selection, although the benefits need testing through economic cycles.

Will International Expansion Sustain NU's Momentum?September's U.S. rollout expands the company's potential market considerably. Through partner Lead Bank, NU introduced an account initially offering 3.5% annual percentage yield and a credit card offering 1.5% cashback. Its Nu Global service targets cross-border money management in more than 35 countries, using digital-dollar and digital-euro balances. These businesses widen Nu's reach, but their contributions to profits remain uncertain.

Competition is substantial. SoFi Technologies combines digital deposits, lending and other financial products, while Chime Financial focuses on mobile-first everyday banking and payroll-linked relationships. Both aim to become their users' primary financial platform. Nu brings experience in acquiring customers cheaply, but its credit models need U.S.-specific data. Management expects 12 to 30 months to build enough local data to bring its credit models closer to the confidence levels achieved in Latin America, suggesting a measured rather than rapid expansion in lending.

NU’s Estimate Revisions Depict an Improving OutlookNU’s estimates for both 2026 and 2027 have increased over the past 60 days. The figures also suggest a year-over-year increase of 38.71% and 35.12%, respectively.

Image Source: Zacks Investment Research

NU’s Credit Quality Remains a Key RiskNu Holdings' credit portfolio grew 37% year over year to $39.4 billion in the second quarter of 2026, supported by higher credit-card and unsecured lending balances. Early-stage delinquencies improved 16 basis points to 4.8%, while 90-day-plus delinquencies increased 35 basis points to 6.9%. Although management attributed the trend largely to seasonality and loan mix, faster unsecured lending growth could raise future provisions. Encouragingly, risk-adjusted net interest margin reached 12.4%, reflecting stronger credit profitability during the period.

NU's Valuation Appears Reasonable Compared With PeersDespite October's rally, NU trades at approximately 2.84 times forward 12-month sales, below SoFi Technologies at 3.60 times and Chime Financial at 3.29 times. The discount appears reasonable considering the company's strong customer growth, improving revenue per active customer and second-quarter return on equity of 33%.

NU's exposure to Latin American currencies, Brazil's political environment and consumer credit risks may justify some valuation gap. The recent rally also reduces the margin for disappointment. Sustained earnings growth and disciplined credit performance will be crucial to supporting further gains in its shares over the coming quarters.

Valuation

Image Source: Zacks Investment Research

What Should Investors Do With NU Stock?Nu Holdings' rally has operating strength behind it. Rising engagement, improving monetization and profitable operations provide a foundation for growth in Brazil, Mexico and potentially the United States. Its forward sales multiple also looks reasonable alongside those of U.S. digital finance peers.

However, a 23% move within days has already captured considerable optimism about Brazil's political direction. Credit performance and the cost of building the U.S. business still warrant attention. For existing shareholders, keeping their current exposure while waiting for fresh earnings and evidence of international execution appears more measured than adding aggressively after such a quick advance over the coming quarters.

At present, NU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Nu Holdings (NU +13.48%) charged sharply higher on Monday, climbing as much as 15.1% in early trading. As of 1:10 p.m. ET, the stock was still up 13.3%.

The catalyst that sent the fintech stock higher was the initial outcome of the primary elections in Brazil.

Image source: The Motley Fool.

Voters get their sayBrazilian presidential elections were held on Sunday. The initial outcome showed that neither current President Luiz Inácio Lula da Silva nor challenger Flávio Bolsonaro -- son of disgraced former President Jair Bolsonaro -- had secured enough votes for a 50% majority needed for an outright victory. As a result, the two will face a run-off election on Oct. 25.

However, with more than 99% of the votes counted, Bolsonaro won 47% of the vote, while da Silva captured 45.1%. The remaining votes went to a variety of challengers, forcing the run-off to be held later this month. Bolsonaro is favored to win, following a strong showing by other right-wing candidates, who won various gubernatorial or congressional races.

On the heels of the election results, the Ibovespa index (IBOV) -- Brazil's main stock index -- opened at a record high.

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So what does this have to do with Nu Holdings? Bolsonaro campaigned on a business-friendly platform focused on lowering taxes and reducing government spending. If successful, his approach could result in lower interest rates, which -- in turn -- would be a boon for financial stocks, including Nu Holdings. Furthermore, lower interest rates would take some of the pressure off debt-laden consumers, thereby reducing late payments and defaults on unsecured debt.

And at just 21 times earnings, Nu Holdings stock is attractively priced.

Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings. The Motley Fool has a disclosure policy.

Nu Holdings NU stock is ripping higher on Monday morning following a surprise turn of events in Brazil's presidential election, where an unexpected “first-round” showing ignited a broader relief rally across Latin American assets.

More importantly, analysts at Goldman Sachs believe the neobank has massive runway remaining; they reiterated a high-conviction Buy rating on NU today.

Note that NU shares are staging a meaningful comeback in October, currently up some 25% versus their low in late September.

NU stock is on a tear primarily because of the “unexpected” outcome of the first round of Brazil’s presidential election.

Challenger Flávio Bolsonaro demonstrated a surprisingly strong performance against incumbent President Luiz Inácio Lula da Silva, forcing the race into a second-round runoff later this month.

Regional stocks reacted with immediate optimism, viewing the better-than-expected conservative turnout and legislative gains as key buffer against potential tax increases, interventionist regulatory shifts, and aggressive fiscal spending.

For Nu Holdings, which operates Nubank and counts nearly 118 million customers in Brazil alone, a stable and pro-business domestic environment is paramount.

The election results triggered a widespread relief rally in Brazilian stocks and currency markets –  with foreign capital flowing back into dominant domestic growth stories.

Because NU is the premier digital banking ecosystem in the region, it stood at the very front of today’s capital rotation.

In addition to political tailwinds, NU shares are benefiting from the removal of a major strategic overhang that had dragged down performance late last month.

Market rumours had suggested that the fintech firm was considering a takeover of UK-based digital bank Monzo – a potential deal valued at up to £10 billion – making investors worried about balance sheet dilution, complex integration risks, and capital misallocation.

Nu decisively put those fears to rest by submitting an official regulatory filing confirming that it is not pursuing any acquisition of Monzo.

Management reiterated its utter commitment to disciplined “organic growth” and focusing capital deployment on its core high-return markets.

Clearing this M&A distraction reassured institutional investors that Nu Holdings Ltd will remain focused on deepening market penetration in Brazil, scaling rapidly in Mexico and Colombia, and building high-margin credit operations.

Goldman Sachs analyst Tito Labarta has a $23 price target set for Nu stock, implying potential upside of another 50% from here.

According to him, the fintech firm continues to execute flawlessly on user monetization, expanding its average revenue per active customer (ARPAC) while maintaining one of the lowest cost-to-serve structures in the global banking sector.

Plus, long-term growth initiatives, such as expanding consumer credit, accelerating deposit growth in Mexico, and exploring entry into strategic international markets, provide sustained “multi-year” compounding potential.

With regulatory clarity returning to Brazil and non-essential M&A risk off the table, Labarta views Nu Holdings as one of the most attractive secular growth opportunities in global fintech today.

Nu Holdings stock has pulled back sharply in recent months, falling from a high of $18.95 in January to around $13.43 today. Despite the decline, the long-term growth story remains intact, supported by the company’s expanding customer base, strong presence in Brazil, and continued push into other Latin American markets such as Mexico and Colombia.

Goldman Sachs analysts also remain optimistic about Nu’s outlook, believing the stock has further upside potential in the near term. Their bullish view suggests that the recent pullback may be more of a valuation reset than a deterioration in the company’s underlying fundamentals.

In a recent note, analysts at Goldman Sachs maintained its bullish outlook for the stock. In a note last week, they noted that the company’s entry into the United States may work out in the long term. The note argued that the company was doing so using a low-cost approach, coupled with a good customer care experience, which will help gain some market share in the country. The report added:

“We think NU’s ultra-low-cost digital approach with a strong consumer experience could allow it to successfully enter the market.”

Other analysts are largely bullish on Nu Holdings. For example, Rothschilds and Needham’s analysts set a target of $19, higher than the current $13. Wolfe Research has a target of $17, while UBS and JPMorgan Chase have targets of $18.20 and 20, respectively. 

The most recent results showed that Nu Holdings’ business continued doing well, with its number of users and customers continuing to rise. It added nearly 4 million customers in the second quarter of the year and now has 139 million globally. 

Most of these users are in Brazil, where it has close to 118 million users, a notable figure since Brazil has a population of 213 million people. Nu Holdings has also become a big neobank in Mexico, where it has 15.8 million customers. Its Colombia business has attracted over 5 million users. 

The company is now planning to launch its business in the UK, where it was said to be considering making a bid for Monzo, one of the country’s biggest neobank. It decided to walk away after Monzo insisted on a £10 billion valuation.

Nu Holdings shares chart | Source: TradingView

The daily chart shows that Nu Holdings shares have dropped by 30% from the all-time high even as its revenue and user growth accelerated. Most recently, the stock formed a down-gap after reports of its Monzo buyout emerged and then filled it after it denied the rumors.

Even so, it remains below the 50-day Exponential Moving Average (EMA), a sign that bears have prevailed. It also sits below the Strong, Pivot, Reverse level of the Murrey Math Lines tool.

Therefore, the stock will likely continue rising as bulls target the important resistance level of $15. This view will be confirmed when it jumps above the Strong Pivot Reverse level of the Murrey Math Lines at $14.

In the latest trading session, Nu Holdings Ltd. (NU - Free Report) closed at $13.44, marking a +1.09% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.

The company's stock has dropped by 15.24% in the past month, falling short of the Finance sector's loss of 4.15% and the S&P 500's gain of 0.55%.

Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. The company is expected to report EPS of $0.23, up 35.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.73 billion, up 37.3% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.86 per share and a revenue of $22.51 billion, representing changes of +38.71% and +42.68%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.93% higher. As of now, Nu Holdings Ltd. holds a Zacks Rank of #3 (Hold).

Investors should also note Nu Holdings Ltd.'s current valuation metrics, including its Forward P/E ratio of 15.38. This signifies a premium in comparison to the average Forward P/E of 11.34 for its industry.

Investors should also note that NU has a PEG ratio of 0.54 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Banks - Foreign industry had an average PEG ratio of 0.84 as trading concluded yesterday.

The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NU in the coming trading sessions, be sure to utilize Zacks.com.

Nu Holdings Ltd. (NU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this company have returned -17.8% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Banks - Foreign industry, to which Nu belongs, has lost 2.2% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Nu is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +35.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.

For the current fiscal year, the consensus earnings estimate of $0.86 points to a change of +38.7% from the prior year. Over the last 30 days, this estimate has changed +0.9%.

For the next fiscal year, the consensus earnings estimate of $1.17 indicates a change of +35.1% from what Nu is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Nu , the consensus sales estimate for the current quarter of $5.73 billion indicates a year-over-year change of +37.3%. For the current and next fiscal years, $22.51 billion and $27.93 billion estimates indicate +42.7% and +24.1% changes, respectively.

Last Reported Results and Surprise HistoryNu reported revenues of $5.51 billion in the last reported quarter, representing a year-over-year change of +50.3%. EPS of $0.22 for the same period compares with $0.14 a year ago.

Compared to the Zacks Consensus Estimate of $5.45 billion, the reported revenues represent a surprise of +1.08%. The EPS surprise was +10%.

Over the last four quarters, Nu surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Nu is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Nu Holdings Ltd. (NYSE:NU) shares are trading higher Thursday on possible continued momentum after the company confirmed on Wednesday it is not pursuing a transaction with Monzo.

Nu stock is among today’s top performers. Why are NU shares rallying? Nu Denies Pursuing Monzo AcquisitionAddressing recent media speculation, Nu said in a statement that “while we have a great deal of respect for Monzo, the Company is not pursuing a transaction with Monzo.” The company added that it regularly evaluates partnerships, investments and acquisitions in the normal course of business, but said its capital allocation framework remains unchanged, with investment decisions based on strategic fit, expected returns relative to its cost of capital and long-term value creation per share.

Nu said it remains focused on its core strategic priorities: deepening its position in Brazil, scaling its businesses in Mexico and Colombia and building its presence in the United States and globally through Nu Global.

Nu Trades Below Every Major Moving AverageEven with Thursday’s premarket pop, Nu is still trading below its major trend gauges: about 6.4% below the 20-day SMA ($14.13), about 7.5% below the 50-day SMA ($14.29), and about 10.3% below the 200-day SMA ($14.74). That keeps the bigger-picture posture cautious, especially after the death cross in April (50-day SMA below the 200-day SMA), which often acts as an overhead "gravity" zone on rallies.

MACD is the cleaner momentum lens right now: it’s below its signal line and the histogram is negative, which points to upside pressure fading versus the prior upswing unless buyers can reclaim key moving averages. In plain terms, when MACD sits under its signal line, it usually means rallies are having trouble sustaining follow-through.

From a levels standpoint, the stock is trying to work back toward an area where rebounds have recently stalled.

Key Resistance: $14.50 — a nearby round-number/pivot area that also sits close to the 20-day and 50-day moving averages overhead Key Support: $11.50 — a nearby floor near the lower end of the 52-week range, where buyers have previously shown up Read Next

Nu Shares Trade HigherNU Price Action: At the time of publication, Nu shares are trading 5.77% higher at $13.39, according to data from Benzinga Pro.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Brazilian digital lender Nubank said on Wednesday ​it is not pursuing a ‌transaction with Monzo, after media reports had said Nubank was in early-stage ​talks to acquire the British ​digital bank.

In a securities filing, ⁠Nubank said it regularly evaluates ​opportunities that could support growth ​and long-term goals, including investments and acquisitions

Nubank, which is listed as Nu Holdings (NU.N), ​said its capital allocation ​framework is unchanged

Nubank said it is focused ‌on ⁠its strategic priorities: "deepening its position in Brazil, scaling its businesses in Mexico and Colombia, and ​building its ​presence ⁠in the United States and around the world ​through Nu Global"

Shares in Nu ​Holdings were ⁠up nearly 7% in trading in New York, after falling ⁠earlier ​this week on ​the media reports

Key Takeaways Nu combines 139 million customers, strong profitability and expansion across Latin America and the US.Chime reached 10.4 million active members as Prime, lending and investing products broaden its platform.Valuations differ sharply, with NU at 11.23X forward earnings versus Chime at 32.18X. Nu Holdings Ltd. (NU - Free Report) and Chime Financial, Inc. (CHYM - Free Report) are both digital-first financial platforms trying to replace branch-heavy banking with simpler mobile products, lower operating costs and deeper customer relationships. Each is using technology, data and a widening product set to make its app the primary place where customers spend, save, borrow and increasingly invest.

The main difference is geography and maturity. Nu operates at huge scale across Brazil, Mexico and Colombia, with 139 million customers at the end of the second quarter, and has now entered the United States. Chime is far smaller, with 10.4 million active members, but it is concentrated on the U.S. market and remains early in expanding beyond checking and payments.

This sets up a choice for investors. Nu offers proven scale, strong profitability and international reach, while Chime offers a younger growth story with improving monetization, new products and a clearer path to owning more of its banking infrastructure.

The Case for NUNu’s strongest argument is its combination of scale and profitability. It ended second-quarter 2026 with 139 million customers, while monthly activity improved to 83.5%. Gross revenues reached nearly $5.9 billion, and net income topped $1 billion for the first time. This gives Nu a much larger earnings base than Chime and more capacity to fund expansion internally.

Brazil remains the core engine. Nu serves almost 118 million customers there, and management says it is the primary account for roughly 60% of its mass-market customers. Products such as Ultravioleta and the newer Croma tier are designed to capture more spending, deposits and investments from higher-value users rather than relying only on customer additions.

Mexico is also becoming more important. Nu has more than 16 million customers there and recently began operating as a bank. The banking license should support payroll deposits, higher insured balances and a broader lending offering. Mexico reached break-even faster than Brazil did, suggesting the company can transfer parts of its operating playbook across markets.

The new U.S. launch adds another long-term growth option, but it also introduces execution risk. Chime already has more than 10 million active members in the United States, so Nu is entering a market with strong digital competitors and different consumer habits.

Nu remains a high-quality growth platform with strong brand recognition, improving monetization and advanced AI capabilities. Still, its larger scale means future growth increasingly depends on deeper engagement, successful international expansion and disciplined credit execution across Brazil, Mexico, Colombia and beyond.

The Case for CHYMChime’s appeal is that several growth levers are working at the same time. Active members reached 10.4 million in second-quarter 2026, up 20% year over year, while average revenue per active member rose 6% to $260. Unlike Nu, Chime is still building scale in one large market, leaving more room for member growth and wallet-share gains.

Chime Prime looks especially important. Members who qualify through higher direct deposits generate more than twice the ARPAM of the average active member. Prime is also helping Chime attract higher-income users, deepen direct-deposit relationships and increase card usage, which supports both payments revenues and broader platform monetization.

The product pipeline is widening quickly. MyPay transaction profit more than tripled year over year, Instant Loans originations rose nearly 70% sequentially, and Chime Invest extends the app into wealth building. These products make Chime less dependent on basic interchange and give it more ways to monetize existing members without relying only on acquisition.

The planned $590 million acquisition of Stride Bank could be another major step. Owning a national bank should reduce partner friction, improve funding flexibility and speed product development. Management expects more than $100 million of net synergies, although regulatory approval and integration remain important execution points.

Chime is also showing stronger operating leverage. Its second-quarter 2026 adjusted EBITDA margin reached 15%, with a 60% incremental margin, while GAAP profitability continued for a second straight quarter. Compared with Nu’s more mature platform, Chime offers a smaller but faster-developing U.S. growth story, with several visible catalysts ahead.

How Do Estimates Compare for NU & CHYM?The Zacks Consensus Estimate for Nu’s 2026 and 2027 sales implies year-over-year growth of 42.68% and 24.09%, respectively. Over the past 60 days, estimates for Nu’s 2026 and 2027 EPS have been revised northward. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 38.71% and 35.12%, respectively.

For Nu Holdings:

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Chime Financial’s 2026 and 2027 sales calls for year-over-year growth of 26.74% and 20.76%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised considerably upward over the past 60 days. The figures suggest a year-over-year increase of 110.30% and 117.59%, respectively.

For Chime Financial:

Image Source: Zacks Investment Research

Price Performance and Valuation of NU & CHYMOver the past three months, Nu shares have declined 8.5%, while Chime Financial shares have rallied 30.3%. In comparison, the S&P 500 composite has advanced 2.7% in the same time frame. 

Image Source: Zacks Investment Research

NU is trading at a forward 12-month price-to-earnings of 11.23X, which is below its one-year median of 13.75X. Meanwhile, CHYM is presently trading at a forward 12-month price-to-earnings of 32.18X, which is well below its one-year median of 40.13X.

This premium means investors are paying more for Chime’s expected growth and improving profitability, so execution matters. Nu’s lower multiple better reflects its established earnings base and gives it more valuation support if growth moderates. Chime, however, may justify part of its premium if Prime, lending, enterprise distribution and the Stride acquisition expand revenues and margins faster than expected.

Image Source: Zacks Investment Research

ConclusionBoth Nu Holdings and Chime Financial have credible long-term growth paths, but their investment profiles are different. Nu offers larger scale, stronger profitability, proven execution across Latin America and a cheaper forward earnings multiple. Its U.S. entry adds optionality, though meaningful contribution will take time.

Chime, meanwhile, has accelerating member growth, improving monetization, expanding products and a potentially important infrastructure shift through the Stride acquisition. These catalysts make Chime the more compelling choice for investors seeking fresh exposure to digital banking growth. Nu still has solid fundamentals and expansion potential, but its risk-reward profile appears better suited to investors already positioned in the shares.

While NU carries a Zacks Rank #3 (Hold), CHYM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the latest close session, Nu Holdings Ltd. (NU - Free Report) was down 10.01% at $12.23. The stock's change was less than the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.92%.

The company's shares have seen a decrease of 4.97% over the last month, not keeping up with the Finance sector's loss of 3.48% and the S&P 500's gain of 0.96%.

The investment community will be paying close attention to the earnings performance of Nu Holdings Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.23, showcasing a 35.29% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.73 billion, showing a 37.3% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.86 per share and a revenue of $22.51 billion, representing changes of +38.71% and +42.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nu Holdings Ltd. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.93% higher. Right now, Nu Holdings Ltd. possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Nu Holdings Ltd. currently has a Forward P/E ratio of 15.73. For comparison, its industry has an average Forward P/E of 11.96, which means Nu Holdings Ltd. is trading at a premium to the group.

Meanwhile, NU's PEG ratio is currently 0.55. 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. By the end of yesterday's trading, the Banks - Foreign industry had an average PEG ratio of 0.87.

The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NU in the coming trading sessions, be sure to utilize Zacks.com.

NU (NYSE:NU – Get Free Report)‘s stock had its “buy” rating reiterated by Needham & Company LLC in a report issued on Monday, Benzinga reports. They presently have a $19.00 price target on the stock. Needham & Company LLC’s target price would indicate a potential upside of 52.43% from the company’s current price.

Several other equities analysts have also commented on NU. Bank of America reiterated an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. Itau BBA Securities lowered NU from an “outperform” rating to a “market perform” rating and cut their target price for the stock from $20.00 to $18.00 in a research note on Wednesday, September 16th. Scotiabank cut shares of NU to a “sector perform” rating and set a $13.00 price target on the stock. in a research report on Wednesday, June 3rd. Susquehanna lifted their price target on shares of NU from $13.00 to $16.00 and gave the stock a “neutral” rating in a research note on Friday, August 14th. Finally, Rothschild & Co Redburn set a $19.00 price objective on shares of NU in a report on Monday. Eight investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, NU has an average rating of “Moderate Buy” and an average price target of $18.02.

View Our Latest Research Report on NU

NU Price Performance Shares of NU stock traded down $1.13 on Monday, hitting $12.47. 64,237,906 shares of the company traded hands, compared to its average volume of 62,646,980. NU has a 12-month low of $11.20 and a 12-month high of $18.98. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35. The company has a market cap of $60.53 billion, a P/E ratio of 16.75, a P/E/G ratio of 0.55 and a beta of 0.94. The firm’s 50-day simple moving average is $14.42 and its 200 day simple moving average is $13.89. NU (NYSE:NU – Get Free Report) last released its earnings results on Tuesday, June 30th. The company reported $0.22 EPS for the quarter. NU had a return on equity of 31.59% and a net margin of 18.65%.The business had revenue of $5.88 billion for the quarter. Analysts expect that NU will post 0.86 earnings per share for the current fiscal year.

NU announced that its Board of Directors has authorized a stock buyback plan on Thursday, June 4th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity at NU In other NU news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the firm’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $15.81, for a total value of $3,505,187.67. Following the sale, the insider owned 979,446 shares of the company’s stock, valued at $15,485,041.26. This trade represents a 18.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Cristina Junqueira sold 65,000 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total transaction of $956,150.00. Following the completion of the transaction, the chief executive officer owned 2,542,083 shares in the company, valued at $37,394,040.93. The trade was a 2.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 361,707 shares of company stock worth $5,626,338 in the last 90 days.

Institutional Trading of NU Large investors have recently modified their holdings of the business. Harbor Investment Advisory LLC grew its position in shares of NU by 68.2% in the 2nd quarter. Harbor Investment Advisory LLC now owns 3,010 shares of the company’s stock worth $40,000 after buying an additional 1,220 shares during the last quarter. Clearstead Advisors LLC raised its holdings in shares of NU by 38.9% during the fourth quarter. Clearstead Advisors LLC now owns 3,587 shares of the company’s stock valued at $60,000 after acquiring an additional 1,004 shares in the last quarter. Whipplewood Advisors LLC lifted its stake in NU by 1,584.0% in the first quarter. Whipplewood Advisors LLC now owns 5,052 shares of the company’s stock worth $73,000 after acquiring an additional 4,752 shares during the period. Jessup Wealth Management Inc purchased a new stake in NU in the fourth quarter worth $74,000. Finally, Ancora Advisors LLC bought a new stake in NU in the second quarter valued at $76,000. 84.02% of the stock is owned by institutional investors.

NU Company Profile (Get Free Report)

Nu Holdings Ltd., operating under the Nubank brand, is a digital financial services company that provides banking, payments and credit products through mobile applications. Its offerings include digital bank accounts, credit cards, personal loans, payment services, investment products and insurance, serving consumers and small businesses.

Founded in Brazil in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nubank was established to simplify financial services and expand access to banking through technology.

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Brazil's Nubank (NU.N) is in early-stage talks with British ​digital bank Monzo about a potential ‌combination that could value Monzo at between £8 billion and £10 billion ($10.60 billion - $13.25 billion), Sky News reported on Saturday.

An ​acquisition by Nubank is one of two ​options Monzo's board is currently exploring, Sky ⁠News said, citing a source close to ​the process.

The other option is a new ​funding round expected to value Monzo at more than £8 billion, with proceeds earmarked for a mainland European expansion, ​the report said.

Monzo declined to comment. Nubank ​could not be immediately reached for comment outside regular business ‌hours.

Nubank, ⁠headquartered in Sao Paulo, is listed on the New York Stock Exchange with a market capitalisation of about $65.5 billion.

London-based Monzo made a ​pretax profit ​of £87.3 million ⁠for the year ended March 31, up from £60.5 million a year earlier, ​with revenue growing to £1.7 billion from £1.2 ​billion, ⁠according to its annual report.

Last October, Monzo was valued at £4.5 billion in an employee share ⁠sale ​to investors including Singapore's sovereign ​wealth fund GIC and StepStone Group.

($1 = 0.7547 pounds)

Banking may seem boring. Not so when you are Nu Holdings (NU -3.81%). The Brazilian bank has taken its country by storm, with over 100 million customers, is growing rapidly in Mexico, and has just announced a launch in the United States.

Despite all this growth, Nu Bank is seeing a rapid profit inflection due to its highly profitable digital banking model. I predict its net income will increase to $5 billion in 2027, making the stock a great buy for the years ahead. Here's why.

Image source: Nu Holdings.

Rapid growth and Mexico inflection The growth at Nu Bank has come through massive adoption from everyday consumers in Brazil and, increasingly, Mexico and Colombia. Profits have come from scaling its smartphone-based banking service across 139 million total customers.

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Net income was flat in 2023 but has since increased to $3.6 billion over the last 12 months. Last quarter, Nu's net income grew 49% year over year to $1 billion, putting it close to a $5 billion run rate.

If this growth continues through 2027, Nu Bank will easily generate $5 billion in net income for the calendar year. This is also due to Nu Bank's scale in Mexico, which has shifted from losses to profit over the last few quarters.

Long-term earnings growth Looking at long-term performance, Nu Bank has a fantastic opportunity to grow its revenue and scale its highly efficient financial services offering.

Its monthly cost to serve active customers, which includes technology and customer support, was just $1 and has remained close to this level for years. Its monthly revenue per active customer is $17.10 and growing 22% year over year. As monthly revenue widens compared to cost to serve, Nu will see better earnings in its existing markets.

In Brazil, Nu Bank now has a ton of existing customers but still has plenty of room to grow revenue per customer by adding new spending, savings, and lending solutions. In Mexico, there is a massive opportunity to grow total customers while simultaneously bringing its existing product suite to the country to drive revenue-per-customer growth.

In the years ahead, there is an opportunity to grow in Colombia, the U.S., and perhaps in Latin America. This should keep Nu Holdings' earnings growing for years to come, which is why the stock looks attractive at its current market cap of $68 billion. That is just 13.6 times my $5 billion 2027 earnings estimate, and much lower over a decade.

Key Takeaways Nu Global reaches 35 countries, expanding the company's cross-border opportunity beyond local banking.Nu had 139 million customers in Q2 2026 and topped $1 billion in quarterly net income for the first time.Planned integrations across Brazil, Colombia, Mexico and the U.S. could deepen cross-border relationships. Nu Holdings’ (NU - Free Report) international expansion is shifting from a market-entry story to a question of how much business it can build outside its core countries. Nu Global lets the company reach customers across more than 35 countries without relying only on local banking operations, widening its cross-border opportunity.

The product targets a sizable market. Nu says more than 300 million people live and work across borders each year, while about $800 billion moved internationally in 2025. Users lose roughly 6%, on average, to fees and exchange-rate margins. Nu Global offers fee-free transfers, plus dollar and euro balances yielding 3.5% and 2.2%, respectively.

Nu is expanding from a stronger base. In the second quarter of 2026, the company had 139 million customers, generated $5.9 billion in gross revenues and crossed $1 billion in quarterly net income for the first time. Deposits reached $45.3 billion, while its efficiency ratio stayed near 20%.

Cross-border services could deepen existing relationships. Nu serves more than 16 million customers in Mexico and more than 5 million in Colombia, while Brazil remains its largest market. Planned integrations with Brazil, Colombia, Mexico and the United States could make Nu Global more useful to customers moving money between markets.

Execution will shape how quickly this opportunity contributes. Nu is still investing in international expansion, with second-quarter operating expenses at $806 million and management expecting an efficiency ratio of about 20% for 2026. In the United States, management expects 12 to 30 months to build confidence in its credit models, suggesting international growth may develop gradually.

Nu Holdings Peers Broaden Their Global Payments Growth PlansSoFi Technologies (SOFI - Free Report) is pushing its payments infrastructure beyond traditional banking. On Sept. 22, SoFi Technologies began stablecoin settlement across Mastercard’s global network, with its $25 billion annualized card program moving to SoFiUSD. The move gives SoFi Technologies another route to scale blockchain-based settlement while keeping its digital banking platform central.

PayPal Holdings (PYPL - Free Report) is also widening its cross-border reach. PayPal World now lets U.S. users pay at Weixin Pay merchants in China, while PYUSD is available across 70 markets. With second-quarter payment volume up 10% to $486.4 billion, PayPal has scale to test whether broader interoperability can support international growth over time.

NU’s Price Performance, Valuation and EstimatesShares of NU have gained 13.6% over the past three months, outperforming the broader industry and the S&P 500 Composite. 

Image Source: Zacks Investment Research

From a valuation standpoint, NU trades at a forward price-to-earnings of 13.06X, above the industry’s 11.04X. It carries a Value Score of D.

Image Source: Zacks Investment Research

NU’s estimates for both 2026 and 2027 have increased over the past month. The figures also suggest a year-over-year increase of 38.7% and 35.1%, respectively. 

Image Source: Zacks Investment Research

NU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nu Holdings Ltd. (NU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this company have returned -5.5% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Banks - Foreign industry, to which Nu belongs, has lost 2.4% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Nu is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +35.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.

For the current fiscal year, the consensus earnings estimate of $0.86 points to a change of +38.7% from the prior year. Over the last 30 days, this estimate has changed +1.9%.

For the next fiscal year, the consensus earnings estimate of $1.17 indicates a change of +35.1% from what Nu is expected to report a year ago. Over the past month, the estimate has changed +0.7%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Nu , the consensus sales estimate of $5.73 billion for the current quarter points to a year-over-year change of +37.3%. The $22.51 billion and $27.93 billion estimates for the current and next fiscal years indicate changes of +42.7% and +24.1%, respectively.

Last Reported Results and Surprise HistoryNu reported revenues of $5.51 billion in the last reported quarter, representing a year-over-year change of +50.3%. EPS of $0.22 for the same period compares with $0.14 a year ago.

Compared to the Zacks Consensus Estimate of $5.45 billion, the reported revenues represent a surprise of +1.08%. The EPS surprise was +10%.

Over the last four quarters, Nu surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Nu is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Itau BBA analyst Pedro Leduc downgraded Nu Holdings Ltd. (NYSE:NU) from Outperform to Market Perform and slashed the price target from $20 to $18. Nu Holdings closed at $14.19 on Tuesday. See how other analysts view this stock. UBS analyst Tasso Vasconcellos downgraded Braskem SA (NYSE:BAK) from Neutral to Sell and cut the price target from $4 to $1.5. Braskem shares closed at $2.10 on Monday. See how other analysts view this stock. Barclays analyst Lukas Shumway downgraded Cellectis SA (NASDAQ:CLLS) from Overweight to Underweight and slashed the price target from $9 to $1.3. Cellectis closed at $1.61 on Tuesday. See how other analysts view this stock. Barrington Research analyst Vincent Colicchio downgraded CBIZ, Inc. (NYSE:CBZ) from Outperform to Market Perform. CBIZ shares closed at $54.68 on Tuesday. See how other analysts view this stock. Considering buying NU stock? Here’s what analysts think:

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Nu Holdings' U.S. launch and Nu Global broaden its growth runway, but execution, underwriting and valuation risks support a patient stance.

Nu Holdings Ltd. (NYSE:NU) shares are trading lower Friday, even as the company launched U.S. operations this week and Needham reiterated a Buy rating on the stock. Here’s what you need to know.

Nu Holdings stock is showing weakness. Why is NU stock retreating? Nu Holdings Launches U.S. Operations With Lead Bank PartnershipNu Holdings flipped the switch on its American business this week, having gone live on September 10 with a lineup of banking products alongside a freshly unveiled offering called Nu Global, built around holding and moving money across multiple currencies.

Stateside, the company is working through FDIC-insured Lead Bank to give customers a savings option yielding 3.50% annually, paired with international and domestic transfers that carry no fees and a credit card with no annual charge that pays back 1.5% on every purchase. Nu’s path to U.S. banking runs through a national charter application filed with the Office of the Comptroller of the Currency back in 2025, which cleared a preliminary hurdle in January, meaning its current offerings run through a bank partner until that process wraps up.

Building on that news, Needham analyst Kyle Peterson kept his Buy rating and $19 price target unchanged. He argued Nu’s new lineup stacks up well against the strongest deposit, card and money-transfer products already sold to American consumers, which should draw interest from customers whether or not they have any personal connection to Nu’s home turf in Brazil, Mexico or Colombia, Investing.com reported.

Looking ahead, Peterson expects Nu to lean harder into marketing and product rollouts to fuel U.S. growth once its in-house bank becomes operational.

Nu Holdings’ Chart Shows a Stock Testing Trend LevelsNone of that news is showing up in today’s price action, though. Shares are running about 0.7% behind the 20-day average near $14.88 and roughly 1.3% under the 200-day mark of $14.96 heading into Friday, putting the stock right around levels chart watchers tend to focus on. That said, the pullback hasn’t done real damage further out, with shares still sitting nearly 3% above the 50-day average of $14.36 and better than 7% above the 100-day line at $13.74.

Momentum looks calm by comparison. The relative strength index reads 50.85, dead center in neutral territory, pointing to a tug-of-war between buyers and sellers rather than either side clearly winning out. The trend picture underneath remains a mixed bag, too: the 20-day average sitting above the 50-day offers a near-term positive, but a death cross from April, when the 50-day dropped under the 200-day, keeps a lid on the longer-term outlook.

This isn’t new territory for the stock, either, having swung from overbought in January to oversold by June, a pattern that points to choppy back-and-forth trading rather than a clean directional trend.

From here, $15.50 emerges as the resistance level worth tracking, a round number where past bounces have lost steam given the stock’s position below its 200-day average, while $13.50 marks the support zone tied to where the stock has recently found its footing, marking the lower boundary of its current trading band.

NU Shares Are DippingNU Price Action: Nu Holdings shares were down 2.33% at $14.67 at the time of publication on Friday, according to Benzinga Pro.

Image: Diego Thomazini/Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Nu Holdings Ltd. (NU) Discusses Vision and Strategy for Global Growth and Digital Banking Transformation September 10, 2026 11:00 AM EDT

Company Participants

David Velez-Osomo - Founder, Chairman & CEO
Cristina Junqueira - Chief Growth Officer & CEO of US

Presentation

David Velez-Osomo
Founder, Chairman & CEO

Hello everyone. Good morning. Thank you for being here. It's an honor to welcome you here into our Nu Stadium, see so many familiar faces. The room is packed, and we have over 10,000 people watching online. So really, really amazing special moment for us to share an incredible and incredible announcement. That video covered 13 years in just a few minutes. I wish building Nubank had been that smooth. But the reality was considerably messier. It started with an ordinary moment. In 2012, I moved to Sao Paulo, and I needed to open a bank account, very simple task. I walked into one of those very fancy branches from one of those very fancy banks. And then I hit a wall. I run into an outrageous experience.

I was stuck in a bulletproof revolving door and alarms started sounding. Armed guards came to see me as almost a criminal, and I had to walk out back and leave my backpack outside in a locker and then walk back in and then just begin a 1.5-hour wait, begging to get a simple bank account. And that entire process ultimately took over 5 months, 5 months until that final credit card arrived, carrying a 1,200% interest rate. I remember thinking, I am trying to give my money to this bank. Why are they treating me like they're doing me a favor? And I would ask my friends, is there something wrong with this bank specifically or what's the issue?

And what I kept hearing was, don't