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Nu Holdings Gains 34% in 6 Months: Should Investors Buy the Stock?
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Key Takeaways
The NU stock gained 33.6% in six months, outperforming its industry, ING Group and Royal Bank of Canada.
NU grew its customer base to 127 million with more than 83% activity, focusing on recurring revenues.
Nu Holdings posts 30.1% ROE and expects 2025 revenue growth of 35.7%, with EPS estimates revised higher.
Nu Holdings Ltd. (NU - Free Report) has recorded a 33.6% increase in its stock price over the six months, beating the industry’s 25.8% rise and the Zacks S&P 500 Composite’s 14.8% return.
NU has outperformed its industry peers, including ING Group (ING - Free Report) and Royal Bank of Canada (RY - Free Report) , with 27.7% and 30.4% growth, respectively.
6-Month Share Price Performance
Image Source: Zacks Investment Research
Recent performances depict that NU has outpaced ING Group and Royal Bank of Canada. Nu Holdings recorded a 4.9% rise compared with ING Group and Royal Bank of Canada’s 4.1% and 1.3% growth, respectively.
Let us evaluate the NU stock to determine whether investing now could yield high returns.
Recurring Revenues: NU’s Strongest Weapon for Growth
Nu Holdings has displayed its ability to drive recurring revenues by leveraging its growing customer base, ensuring minimal macroeconomic pressure. In the third quarter of 2025, the company widened its customer base to 127 million, adding more than 4 million users, while maintaining an above 83% activity rate. Rapid user acquisition was the prevalent growth catalyst for the company. However, the company now relies on deep monetization of users across payments, savings, insurance and other offerings. The inclination toward recurring revenues increases NU’s performance stability, even during periods of tighter credit conditions or forex volatility across Latin America.
The company’s main motive is to gain from high-engagement products. It has tactfully moved past higher-risk credit and scale revenues via everyday transactions, low-cost deposits and steady cross-selling. These means of generating revenues compound with scale and mitigate quarter-to-quarter volatility that affects traditional banks. Rising product adoption boosts average revenues per active user, supporting long-term earnings visibility.
This business model’s efficiency is turned up a notch when combined with NU’s prudent cost structure. The predominantly tech-backed platform ignores physical infrastructure, which benefits the company in terms of directing incremental revenues toward a more operationally efficient structure. Nu Holdings has carved out its position within the market amid the legacy banks that struggle to meet rising compliance and structural costs. This provides revenue durability that leads to a strategic advantage, supporting premium valuation multiples and solidifying consistent shareholder returns.
Nu Holdings’ Robust Capital Efficiency
NU also excels in capital efficiency, showcasing strong profitability metrics. Its trailing 12-month return on equity stands at 30.1%, significantly higher than the industry average of 11.4%. On that similar note, NU’s return on invested capital of 14.3% beats the industry average of 3.4%, highlighting management’s effectiveness in deploying capital to generate robust shareholder returns.
Image Source: Zacks Investment Research
NU’s Top & Bottom-Line Outlook Appears Strong
The Zacks Consensus Estimate for Nu Holdings’ 2025 revenues is pinned at $15.6 billion, indicating 35.7% growth from the year-ago reported level. For 2026, revenues are anticipated to gain 29.5% year over year.
The consensus estimate for 2025 EPS is set at 60 cents, indicating 33.3% year-over-year growth. For 2026, it is expected to rally 42.5% from the preceding year’s actual.
Over the past 60 days, three EPS estimates each for 2025 and 2026 have been revised upward, with no downward revisions. During this period, the Zacks Consensus Estimate for 2025 and 2026 EPS has improved 7.1% and 4.9%, respectively. These upward revisions demonstrate analysts' increased confidence.
Image Source: Zacks Investment Research
Add Nu Holdings to Your Portfolio Now
NU presents a compelling growth narrative on the back of its ability to gain from recurring revenues while mitigating macroeconomic headwinds with ease. The company displayed a unique scaling ability, as evidenced by 4 million user additions in the third quarter of 2025. It is really impressive how the company has managed to create a predictable and durable revenue stream on the back of its high-engagement products.
The stock is fundamentally strong, and its profitability metrics depict NU’s ability to provide shareholders with above industry-average returns. Banking on its strengths, we recommend that investors buy this stock now and benefit from the digital transformation of Latin American finance led by Nu Holdings.
Image: Bigstock
Nu Holdings Gains 34% in 6 Months: Should Investors Buy the Stock?
Key Takeaways
Nu Holdings Ltd. (NU - Free Report) has recorded a 33.6% increase in its stock price over the six months, beating the industry’s 25.8% rise and the Zacks S&P 500 Composite’s 14.8% return.
NU has outperformed its industry peers, including ING Group (ING - Free Report) and Royal Bank of Canada (RY - Free Report) , with 27.7% and 30.4% growth, respectively.
6-Month Share Price Performance
Recent performances depict that NU has outpaced ING Group and Royal Bank of Canada. Nu Holdings recorded a 4.9% rise compared with ING Group and Royal Bank of Canada’s 4.1% and 1.3% growth, respectively.
Let us evaluate the NU stock to determine whether investing now could yield high returns.
Recurring Revenues: NU’s Strongest Weapon for Growth
Nu Holdings has displayed its ability to drive recurring revenues by leveraging its growing customer base, ensuring minimal macroeconomic pressure. In the third quarter of 2025, the company widened its customer base to 127 million, adding more than 4 million users, while maintaining an above 83% activity rate. Rapid user acquisition was the prevalent growth catalyst for the company. However, the company now relies on deep monetization of users across payments, savings, insurance and other offerings. The inclination toward recurring revenues increases NU’s performance stability, even during periods of tighter credit conditions or forex volatility across Latin America.
The company’s main motive is to gain from high-engagement products. It has tactfully moved past higher-risk credit and scale revenues via everyday transactions, low-cost deposits and steady cross-selling. These means of generating revenues compound with scale and mitigate quarter-to-quarter volatility that affects traditional banks. Rising product adoption boosts average revenues per active user, supporting long-term earnings visibility.
This business model’s efficiency is turned up a notch when combined with NU’s prudent cost structure. The predominantly tech-backed platform ignores physical infrastructure, which benefits the company in terms of directing incremental revenues toward a more operationally efficient structure. Nu Holdings has carved out its position within the market amid the legacy banks that struggle to meet rising compliance and structural costs. This provides revenue durability that leads to a strategic advantage, supporting premium valuation multiples and solidifying consistent shareholder returns.
Nu Holdings’ Robust Capital Efficiency
NU also excels in capital efficiency, showcasing strong profitability metrics. Its trailing 12-month return on equity stands at 30.1%, significantly higher than the industry average of 11.4%. On that similar note, NU’s return on invested capital of 14.3% beats the industry average of 3.4%, highlighting management’s effectiveness in deploying capital to generate robust shareholder returns.
NU’s Top & Bottom-Line Outlook Appears Strong
The Zacks Consensus Estimate for Nu Holdings’ 2025 revenues is pinned at $15.6 billion, indicating 35.7% growth from the year-ago reported level. For 2026, revenues are anticipated to gain 29.5% year over year.
The consensus estimate for 2025 EPS is set at 60 cents, indicating 33.3% year-over-year growth. For 2026, it is expected to rally 42.5% from the preceding year’s actual.
Over the past 60 days, three EPS estimates each for 2025 and 2026 have been revised upward, with no downward revisions. During this period, the Zacks Consensus Estimate for 2025 and 2026 EPS has improved 7.1% and 4.9%, respectively. These upward revisions demonstrate analysts' increased confidence.
Add Nu Holdings to Your Portfolio Now
NU presents a compelling growth narrative on the back of its ability to gain from recurring revenues while mitigating macroeconomic headwinds with ease. The company displayed a unique scaling ability, as evidenced by 4 million user additions in the third quarter of 2025. It is really impressive how the company has managed to create a predictable and durable revenue stream on the back of its high-engagement products.
The stock is fundamentally strong, and its profitability metrics depict NU’s ability to provide shareholders with above industry-average returns. Banking on its strengths, we recommend that investors buy this stock now and benefit from the digital transformation of Latin American finance led by Nu Holdings.
NU currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.