Nu Holdings: 2 Critical External Headwinds To Understand & Exploit (Rating Upgrade)

Summary:

• Nu Holdings faced a sharp selloff due to Brazil’s macro environment and misconceptions about its credit portfolio, despite strong 2024 performance.
• Nu’s fundamentals remain robust, with 50% revenue growth and nearly doubling EPS, driven by rapid customer and product expansion.
• The stock is undervalued at 17 times ’25 earnings, presenting a lucrative opportunity for long-term investors amid macro panic.
• I upgraded Nu to a ‘Strong Buy’ as its growth potential and efficiency outweighed temporary macroeconomic concerns.

As 2024 approaches an end, it’s time to revisit my Top Pick coming into the year – Nu Holdings (NYSE:NU).

Until early November, it was quite tough to control the excitement, as the double was getting close. Then, a deterioration in the macro environment

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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