Down 30% From Its Highs, This Warren Buffett Favorite Is Trading Under $20

Nu Holdings, the parent of Nubank, operates a digital banking platform that has disrupted traditional banks across Brazil, Mexico, and Colombia. The stock trades around $13.16, below recent highs and within a sub-$20 entry range. The company reported its first $5 billion revenue quarter, with net income of $871 million, up 41% year over year on an FX-neutral basis. Net income has compounded at more than 80% annually since 2022. The credit portfolio reached $37.2 billion, deposits reached $42.4 billion, and customer count exceeds 135 million. Analysts show strong buy sentiment, and valuation metrics include a forward P/E near 18 and a PEG of 0.753 alongside about 30.1% return on equity.

"Nu Holdings (NYSE: NU), the parent company behind Nubank, is the digital banking platform that has systematically disrupted incumbent banks across Brazil, Mexico, and Colombia. Shares closed the most recent session at $13.16, which puts the stock comfortably inside our $20 ceiling and well below the 52-week high of $18.98. For a retail investor, that is the kind of entry price that makes it easy to build a position without overcommitting, especially in a name that has scaled from a Brazilian credit card startup into a banking franchise with more than 135 million customers."

"Nubank just put up its first $5 billion revenue quarter in company history, with net income climbing to $871 million, up 41% year over year on an FX-neutral basis, and net income has been compounding at more than 80% annually since 2022. The credit portfolio reached $37.2 billion, up 40% year over year FX-neutral, while deposits hit $42.4 billion. Wall Street is on board: 4 strong buys, 15 buys, and just 2 holds, with an average price target of $19.43, implying meaningful upside from current levels."

"Nu Holdings trades at a forward P/E near 18 with a PEG ratio of 0.753, which is unusually cheap for a bank growing this fast and generating a return on equity of 30.1%. CEO David Vélez framed the runway bluntly on the earnings call, noting that even after years of share gains, "it's still day one for Nubank in Brazil" with only roughly 7% of a"

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