Nu Holdings, a Brazilian digital banking upstart owned by Warren Buffett’s Berkshire Hathaway, has shown impressive growth. The stock has catapulted to a post-IPO high, capturing substantial investor interest. The stock’s technical analysis reveals a “flat base” pattern with a critical entry point at 15.16, supported firmly at a 10-week moving average.
This aligns with the strong performance of Nu Holdings. Founded in 2016, Nu Holdings leverages data and technology to transform traditional banking and empower its over 105 million customers across Brazil, Mexico, and Colombia. The company’s innovative approach and rapid, profitable growth have positioned it as a leader in the fintech sector.
Shares of Nu Holdings surged 3.6%, marking a significant gain that pushed the stock above a 15.16 entry from a six-week, first-stage flat base. The relative strength line for Nu stock is at a new high, indicating that it is outperforming the S&P 500 index. Nu Holdings’ financial performance is robust.
As of November 13, earnings are set to reflect continued growth.
Nu Holdings’ rapid stock growth
The company reported earning $0.10 per share in the second quarter with sales of $2.85 billion.
Year-over-year, Nu’s earnings doubled, and revenue increased by 52.5%. Over the last three quarters, Nu’s earnings growth averaged an impressive 161%. Analysts project that earnings will surge 74% to $0.42 per share for the full year and rise another 43% in 2025.
Despite a more tempered sales growth forecast of 29% for 2024 and 31% for 2025 compared to 67% in 2023, investor sentiment remains positive. Nu Holdings has an impressive Composite Rating of 98, an RS Rating of 93, and an EPS Rating of 81, out of a best-possible 99. While the stock has shown wild swings since its IPO in December 2021, it has consistently posted positive earnings from Q3 2022 onwards.
Year-to-date, Nu stock has jumped 87% to a post-IPO high, which might limit the upside potential from its latest breakout. However, FactSet data shows that 10 out of 21 analysts covering Nu stock rate it a sell or hold, with an average price target of 14.56, slightly below Monday’s trading price. Nu Holdings continues to demonstrate robust growth and market performance.
With its strong technical base, significant financial improvements, and bullish breakout, the stock remains a key player in the fintech sector, capturing the attention of notable investors such as Warren Buffett and Cathie Wood.
