$Nu Holdings Ltd.(NU)$ is now generating $1B+ in net income per quarter, growing at roughly a 30% CAGR — yet the stock is down 20%.
That disconnect is what has my attention.
💰 $59B market cap
📉 ~13x forward P/E
🔄 $500M buyback launched in Q2
📈 30% CAGR
The market is focused on macro volatility in Brazil and whether $NU can comfortably fund an ~$11B acquisition.
But zoom out.
$NU is expanding beyond its original customer base in Brazil, pushing further into the middle-income segment while continuing to grow in Mexico and Colombia.
The business profile is evolving quickly.
And now $NU has expanded into the U.S., opening another potential avenue for growth and a different narrative around the company.
One thing that stands out: despite a ~$59B market cap, $NU had only 9 analyst ratings over the past 3 months, compared with 15 for Truist ($TFC) at a similar market cap.
Wall Street coverage may simply be lagging the pace of change.
The key question now is whether $NU’s earnings growth, geographic expansion and capital returns eventually force the market to reassess how it values the business. 👀
Markets are always moving - and sometimes, the best move is knowing what works for you.
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