“Nu is one of the most exciting stocks in the market today, experiencing tremendous growth like a startup and successfully transitioning to a highly profitable company. Nu is a leading fintech company that operates primarily in Latin America, with a strong presence in Brazil, Mexico, and Colombia. It is best known for its digital banking platform, Nubank, which offers a wide range of financial services, including digital credit cards, personal loans, and investment products.

Nu stock is pushing new all-time highs this week on the heels of an impressive quarterly earnings beat. Sales in the quarter showed a 77% year-over-year (YoY) increase demonstrating its exceptional growth rate. But even more impressive is its continued growth in profitability. In the chart below we can see that over the last year, net margins have inflected meaningfully positive contributing to investors interest in the stock.

Nu also has a Zacks Rank #2 (Buy) rating, reflecting upward trending earnings revisions.

What is especially compelling about Nu is its valuation. Now that the company is showing regular profits, it enjoys a very reasonable price, especially for its growth estimates. NU is trading at a one year forward earnings multiple of 35.2x and has earnings per share (EPS) growth forecasts of 51.8% annually over the next three to five years. That means it has a PEG ratio of just 0.68, which is a discount based on the metric.”

Nu is a High-Growth Fintech Stock