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This business has been growing rapidly, with revenue and customers up significantly.
The current valuation is below the S&P 500’s multiple.
With earnings set to soar, investors are looking at an attractive opportunity.
Investing at the crossroads of financial services and technology presents exciting opportunities. Many businesses within this space appear to have a lot of potential. However, one fintech stock in particular just soared 62% in 2025, and it's up 364% in the past three years (as of Jan. 12).
Continue reading to find out what this company is and why it could be one of the best to own in 2026.
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Image source: Getty Images.
Because it has zero presence in the U.S., investors might not be familiar with Nu Holdings (NYSE: NU). But I believe it could be a top investment opportunity this year.
Its financial performance has been noteworthy. Nu's revenue increased 42% year over year in the third quarter of 2025 (ended Sept. 30). Wall Street analysts believe the top line will grow 31% in 2026. This would continue an incredible run of rapid expansion.
One contributing factor is customer growth. Nu ended the third quarter with 127 million customers. That's up from 70 million three years before. The company's main market is Brazil, where 60% of the adult population are Nu customers. Its offerings are also available in Mexico and Colombia, newer markets that are experiencing great success so far.
There is long-term potential as well. Latin America has a high population of unbanked and underbanked citizens. With improving smartphone and internet penetration, the ingredients are there for Nu to keep succeeding.
If a stock has climbed as much as Nu has, investors might worry that the valuation has gotten stretched. This isn't the case here. Nu trades at a forward price-to-earnings ratio of 21.8. I view this as an attractive entry point for prospective investors. The S&P 500 trades at a more expensive 22.4 multiple. This is a clear signal that investors wouldn't be overpaying for the stock.
Besides Nu's impressive revenue growth, the bottom line has also surged, thanks to the company's scalable business model. Operating a full digital bank with no physical branches creates a favorable setup, as a significant operating cost is avoided. Analysts expect earnings per share to increase 42% between 2025 and 2026.
A compelling starting valuation and profit gains can create a winning combination for shareholders. However, it's not a foregone conclusion that Nu's stock price will be higher at the end of this year. Market sentiment is always changing, and there is no way of knowing what it will be in December. The best investors will consider Nu with a long-term mindset.
Before you buy stock in Nu Holdings, consider this:
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
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