Latest news with #NuHoldings
Yahoo
20-07-2025
- Business
- Yahoo
2 growth stocks backed by this British fund that's soared 77.8% in just 3 years!
It's probably fair to say that VT Holland Advisors Equity Fund isn't immediately familiar to a lot of British investors. Given that the fund is very much on the small side (only £39.3m), perhaps that's unsurprising. But VT Holland Advisors holds a handful of exciting growth stocks, and has delivered excellent outperformance. Run by Andrew Hollingworth, it has returned 77.8% for the three-year period to 30 June. That destroys its Investment Association Global Sector benchmark (25.7%), and also beats both the FTSE 100 and S&P 500. Helping drive some of the recent portfolio outperformance has been a pair of top growth stocks (which I also own). Let's take a closer look at them. A snowball at the top of a hill The first stock is Nu Holdings (NYSE:NU), which is the firm behind Brazilian digital lender Nubank. It's up 35% year to date. Nubank was built from the ground up as a digital-only bank, with no physical branches. It offers customers far superior and cheaper services than the legacy banks across Latin America. Our enthusiasm for Nubank is that we can see a potential revolution in its customer offering vs sleepy, fat banking incumbents. In Q1, Nu grew its customer base to an incredible 118.6m, adding over 4m in the quarter. Yet it only operates in three countries (Brazil, Mexico, and Colombia). And while around 60% of adults in Brazil are customers, the other two nations offer significant growth potential (never mind elsewhere). That said, the lender could come unstuck as its credit portfolio grows. If the loss ratio worsens, that could quickly eat into margins and dent investors' confidence. Nevertheless, the firm's fundamentals are impressive. Average monthly revenue per customer has increased from $7 in 2022 to $11.20 in Q1 2025. But among longer-term customers who use more of services, that figure jumps to nearly $26. This is why Hollingworth has described the company as 'a snowball at the top of a hill'. I agree, making this share worth considering for the long term, in my opinion. Classic disruptor The second stock I want to highlight from VT Holland Advisors' portfolio is one I finally bought earlier this month: Wise (LSE: WISE). This fintech stock is up around 31% over the past year. Wise helps people and businesses send money across borders quickly, cheaply, and transparently. Around two-thirds of the company's new customers come by word of mouth. The firm takes a cut of the transfers, but what Hollingworth likes is how Wise keeps lowering fees as it scales (similar to Nubank). Wise's cross-border take rate in Q1 was 0.52% globally, down from 0.58% the year before. The fund manager says this is 'classic disruptor behaviour', with the firm 'building a powerful…[and] hard-to-copy scalable network'. Looking ahead, Wise could face rising competition, with rivals all looking to take share in the massive £32trn cross-border money market. A global economic downturn would also likely slow payment volumes. Yet, I think Wise is still worth considering right now, along with VT Holland Advisors Fund. The latter's portfolio of just 30 stocks does present some concentration risk, but I reckon the manager's strategy to 'find great companies run by great managers available at great prices' will continue to bear fruit. The post 2 growth stocks backed by this British fund that's soared 77.8% in just 3 years! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has positions in Nu Holdings, Taiwan Semiconductor Manufacturing, and Wise Plc. The Motley Fool UK has recommended Nu Holdings, Rosebank Industries Plc, Taiwan Semiconductor Manufacturing, and Wise Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Should You Buy Nu Holdings While It's Below $13?
Nu benefits from being able to tap a huge unbanked and underbanked population, and it can lean on its tech prowess to attract customers. Revenue growth has been impressive, and the top-line gains have fueled rising profits thanks to strong unit economics. At a forward P/E below 23, Nu stock looks like a smart buy. 10 stocks we like better than Nu Holdings › Nu Holdings (NYSE: NU) was previously an investment for Warren Buffett-led Berkshire Hathaway. The conglomerate owned shares from the initial public offering in December 2021 to the first quarter of this year, when it completely exited its position. But just because Berkshire is no longer a shareholder, it doesn't mean the business lacks favorable qualities. In the past 12 months, this fintech stock has fallen 3% (as of July 11). However, it's up 24% in 2025 despite extreme volatility. Shares now trade below $13. Should you add Nu to your portfolio? Nu Holdings is a digital banking pioneer that operates in Brazil, Mexico, and Colombia. It offers customers various financial services that can be accessed via their smartphones. With a tech-forward approach and no physical bank branches, it shouldn't be surprising that it has been growing at a brisk pace. As of March 31, the business had 119 million customers -- essentially double from 60 million three years ago. The home market of Brazil is Nu's most important, where its 105 million customers represent 59% of that country's adult population. Even with such a high penetration, Nu's management says the company currently has only captured 5% of the gross-profit total addressable market in Brazil. There's clearly more potential for its financial performance to rise to get on par with its customer count. Mexico and Colombia are both relatively new markets for the fintech company, and the growth playbook is likely the same. It's all about leaning heavily on technology to provide an exceptional user experience. It will be important for Nu to expand its deposit base because it provides low-cost funding that fuels loan growth. And deposit accounts can be sticky, leading to long-lasting customer relationships. Investors can be optimistic that the growth ahead will still be robust. Nu could continue cross-selling products to existing customers while adding new customers. And in the future, it has other markets in Latin America, albeit smaller ones, that it can tap. The consensus view from Wall Street analysts is that revenue will increase 29% this year, before rising 24% in 2026. This is an encouraging outlook. Many fast-growing enterprises are primarily focused on acquiring new customers and growing their revenue as quickly as possible; producing net income is usually an afterthought. You were previously able to describe Nu this way. But in 2023, the business finally turned the corner financially, reporting positive net income based on generally accepted accounting principles. In 2024, net income was up 91% year over year. Plus, it showed a 74% gain in the first quarter of this year. Not having to deal with the overhead of physical bank branches helps. Nu's unit economics, or the financial situation of each customer relationship, is outstanding. During the first quarter of 2025, its monthly average revenue per active customer was $11.20. And the data shows that the longer a customer stays with Nu, the more lucrative they are for the business. On the other hand, it only costs $0.70 per month on average to serve a customer. It's no wonder that as Nu scales up, it can boost the bottom line. Between 2024 and 2027, diluted earnings per share are set to grow at a compound annual rate of 36%, according to analyst estimates. That's a wonderful forecast that should help drive the stock price higher. With a fintech platform that's clearly resonating with people, rapid revenue growth, and expanding profits, you would be forgiven for assuming that Nu stock trades at an expensive valuation multiple. But this isn't the case at all. As of July 11, investors can buy shares at a forward price-to-earnings ratio of just 22.6. And with Nu Holdings trading below $13, this opportunity looks ripe for the picking. The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nu Holdings make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,053% vs. just 180% for the S&P — that is beating the market by 873.17%!* Imagine if you were a Stock Advisor member 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!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 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. Should You Buy Nu Holdings While It's Below $13? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
The Smartest Bank Stocks to Buy With $100 Right Now
SoFi is adding high-value services to its platform that target its specific market. Nu is adding millions of customers quarterly, but it's still a small fish in a large sea of financial companies in Latin America. 10 stocks we like better than SoFi Technologies › Bank stocks as a category are generally high-value, low-growth stocks. They typically pay dividends, often with attractive yields, and they're reliable for long-term growth as they drive the economy. However, if you're looking for great bank stocks, I'm going to turn the tables here and present two quality candidates that are high-octane growth stocks with no dividends that are not for the risk-averse investor. If that fits your investing profile, and you have $100 to invest right now, SoFi Technologies (NASDAQ: SOFI) and Nu Holdings (NYSE: NU) are two stocks you should take a look at. SoFi was one of the legions of special-purpose acquisition companies (SPACs) that stormed the markets a few years ago before petering out to a trickle these days. It's one of the few that actually took off, becoming a real industry disruptor with loads of potential. The bank is all online, with a multitude of easy-to-use services geared toward the novice user. Since it was created to be completely digital, and it's still small and growing, it has agility and flexibility that give it a leg up, in certain ways, over legacy banks. It's attracting customers at a rapid pace, with a record 800,000 new accounts in 2025's first quarter, a 34% increase from the same period last year. The target market is young professionals who are getting their feet wet in finance, with good jobs and a long runway in increasing engagement and adoption of financial services. The company calls its growth strategy the financial services productivity loop, and it involves cross-selling and upselling more services to monetize its user base more effectively over time. That means adding new customers and impressing them enough to keep them, as well as launching new services to have a broad assortment of products and solutions. To appeal to this specific market, it's using some aggressive marketing techniques like naming sports arenas that are meaningful to these users and sponsoring events they appreciate. More than that, it's rolling out services with the intent to deliver real value to its customers rather than simply mimicking what's already available through other banks. For example, it has offered access to initial public offerings (IPOs) usually only available to institutional investors, and it recently announced that it will offer users instant global remittances through a blockchain. Last week, it announced access to private markets through several partnerships. SoFi's core segment is lending, and as interest rates have started to come down, it has been boasting strong revenue gains and profit growth, as well as improving credit metrics. But it's focusing on expanding its platform, specifically in the financial services segment, which is low cost and fee based. It's probably only a matter of time until this segment becomes its largest, and scale is resulting in increasing net income. Chief Executive Officer Anthony Noto envisions SoFi becoming a top-10 bank with a huge, long-term opportunity. Nu is similar to SoFi, but it operates in Brazil, Mexico, and Colombia. It's growing fast, adding millions of new customers quarterly, but it has a way to go. The bank added more than 4.3 million new accounts in 2025's Q1 for a total of 118.6 million. The vast majority, 104.3 million, are in the company's home market of Brazil, where more than half of the adult population has a Nu account. Although it's still adding millions of new customers there, it's growing even faster in Mexico and Colombia where it's still a small presence. It only recently launched savings accounts in these countries, and it was recently approved for a bank charter in Mexico, making it the first all-digital bank to get one. Customers are highly engaged, and the company is reporting strong growth metrics. Revenue increased 40% year over year in 2025's Q1, and net income was up 74% to $557.2 million. Although sales growth decelerated in the quarter, Nu has been demonstrating admirable performance considering the high inflation and overall volatile macroeconomy in Brazil. Deposits increased 48% over last year in the quarter, and loan originations were up 64%, but net interest margin (NIM) was down from 19.5% last year to 17.5% this year. Management cites its heavy investments in expanding the business in Mexico and Colombia as pressuring the margin. However, even though those two regions aren't yet profitable, the Brazil business is profitable enough on its own to keep earnings positive and allow for newer growth areas. Nu has a small share of the financial services system in its regions, specifically in Mexico, but it's growing quickly, and there's a tremendous opportunity to capture more. Now is an excellent time to get in as it keeps expanding. Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoFi Technologies 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 $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!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Jennifer Saibil has positions in Nu Holdings and SoFi Technologies. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. The Smartest Bank Stocks to Buy With $100 Right Now was originally published by The Motley Fool
Yahoo
09-07-2025
- Business
- Yahoo
Do You Believe in the Growth Potential of Nu Holdings (NU)?
Artisan Partners, an investment management company, released its 'Artisan Developing World Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Investor Class) returned 14.40% compared to 11.99% for the MSCI Emerging Markets Index. The Artisan Developing World Fund has returned 192.04% cumulatively, since June 30, 2015, compared to 60.03% for the index. Equities rose in the quarter despite uncertainty around US trade initiatives, strife in longer-dated bond markets, shifts in global currency preferences, and flash points in geopolitical conditions. US markets outperformed international markets in local currency terms for the same period. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Artisan Developing World Fund highlighted stocks such as Nu Holdings Ltd. (NYSE:NU). Headquartered in São Paulo, Brazil, Nu Holdings Ltd. (NYSE:NU) is a digital banking platform. The one-month return of Nu Holdings Ltd. (NYSE:NU) was 6.50%, and its shares gained 2.88% of their value over the last 52 weeks. On July 8, 2025, Nu Holdings Ltd. (NYSE:NU) stock closed at $13.59 per share, with a market capitalization of $65.564 billion. Artisan Developing World Fund stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its second quarter 2025 investor letter: Top contributors to performance for the quarter included MercadoLibre, CrowdStrike, Latin American financial services company Nu Holdings Ltd. (NYSE:NU), Sea, and ARM Holdings. Nubank benefited from reaccelerating installment lending and stabilizing net interest margins, and may have also seen an uplift from growing interest in leading fintech-related companies following recent successful public offerings. A business professional banking from their laptop, taking advantage of the company's investment services. Nu Holdings Ltd. (NYSE:NU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held Nu Holdings Ltd. (NYSE:NU) at the end of the first quarter, compared to 79 in the previous quarter. While we acknowledge the potential of NU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
JPMorgan Raises PT for Nu Holdings (NU), Keeps Overweight Rating
Nu Holdings Ltd. (NYSE:NU) is one of the 11 Best Fintech Stocks to Buy Right Now. On June 30, JPMorgan increased its price target for Nu Holdings Ltd. (NYSE:NU) from $14.50 to $16 and maintained an 'Overweight' rating. JPMorgan stays bullish on Nu Holdings Ltd. (NYSE:NU) and expects the company to benefit from strong loan growth. A wide angle shot of a team of bankers and financial advisors evaluating an investment portfolio on a touchscreen monitor. JPMorgan analysts also anticipate improvements in net interest margin and credit card loan yields, which could help improve earnings in 2025 and 2026. The firm raised its estimates for Nu Holdings Ltd. (NYSE:NU) by 4% for both 2025 and 2026. Nu Holdings Ltd. (NYSE:NU) is a financial technology company that operates a digital banking platform. The company has a fully digital model and offers a wide range of financial services to over 118 million customers in Brazil, Mexico, and Colombia. While we acknowledge the potential of NU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
