Zacks.com users have recently been watching Nu (NU) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
With short-term rates still elevated, tariff uncertainty churning through earnings models, and credit spreads widening at the margins, balance sheet quality has quietly become the most underrated factor in equity selection.
Nu Holdings is initiated at a buy rating, with the recent stock selloff seen as a long-term buying opportunity. NU's resilient YoY customer and financial metrics, including 42% revenue growth and improved efficiency, underscore strong execution despite mixed QoQ trends. Forward P/E of 13.83 reflects excessive market pessimism, as Nu continues to expand market share and invest heavily in Brazil.
I reinforce my buy rating on Nu Holdings despite a mixed Q1 marked by higher delinquency and provisioning. NU's credit portfolio grew 40% YoY, with credit cards as the main driver, but rising NPLs and provisions spooked investors. Net income rose 41% YoY to $871 million, though ROE fell to 29% and NIM declined sequentially—key metrics to monitor ahead.
NU NYSE: NU executives said the digital banking company delivered another quarter of customer growth, revenue expansion and operating leverage, while emphasizing that higher credit provisions in the first quarter reflected seasonality, portfolio growth and product mix rather than deterioration in underlying asset quality.
Nu Holdings Ltd. (NU) Q1 2026 Earnings Call Transcript
Nu Holdings Ltd. (NU) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.2 per share.
Our 24/7 Wall St. price target for Nu Holdings (NYSE:NU | NU Price Prediction) is $17.97, pointing to 40.2% upside from the current $12.82 share price.
NU heads into Q1 earnings with strong customer growth and Latin America expansion, but its premium valuation may limit upside in the near term.
Zacks.com users have recently been watching Nu (NU) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Nu Holdings Ltd. (NU) concluded the recent trading session at $14.16, signifying a -1.94% move from its prior day's close.