Here's Why Nu Holdings Stock Is a Buy Before May 13

Core Viewpoint - Nu Holdings presents a unique buying opportunity for investors as it is currently trading at a discount despite its proven growth trajectory [1] Company Overview - Nu Holdings was founded in 2013 by a former venture capitalist who identified a significant market opportunity in Latin America, where traditional banking was dominated by a few large incumbents, leading to low innovation and high fees [2] - The company offers low-cost financial services through a smartphone app, eliminating the need for physical branches, which accelerates customer acquisition and reduces operating costs [3] Growth Strategy - Since its inception, Nu has grown its customer base from zero to over 100 million, with more than half of Brazilian adults now using its services [4] - The company has successfully expanded into Mexico and Colombia, with a large untapped market in Latin America still available for growth [4] Financial Performance - Nu achieved profitability in 2023, with profits scaling impressively, leading to shares trading at 29 times earnings, which is lower than the S&P 500 average [7] - On a forward price-to-earnings basis, Nu is trading at under 21 times earnings, indicating strong profit growth despite a decline in revenue growth [8] Future Outlook - Upcoming quarterly results are expected on May 13, and if profit growth continues, a rerating of Nu's valuation may occur, making shares an attractive buy before this date [9]