Nu Holdings Ltd. (NU) is trading at $12.32, down 4.7% with a composite score of -21/100, indicating a significant dislocation between its current price and target price of $20. The stock's recent Q1 earnings call highlighted $5B in revenue, but margins came under pressure, which, combined with a sector-wide bearish sentiment, has driven the stock's 1M -16.2% and 3M -23.1% returns. The market is currently pricing in concerns around margin compression, with the key risk being whether NU can sustain its 44% revenue growth while maintaining profitability.
Composite
-21
/ 100
1M
-16.2%
3M
-23.1%
6M
-20.1%
1Y
-4.2%
Trend
DOWN
Sharpe
0.02
Fundamentals
Sector
Financial Services
Industry
Banks - Regional
Market Cap
$60B
Fwd P/E
10.4
Trail P/E
21.2
Beta
1.01
Short Interest
3.7%
Analyst Target
$20
Margin
41%
Rev Growth
44%
EPS Growth
61%
ROE
30%
From 52w High
-35.2%
From 52w Low
+5.0%
Consensus
Strong Buy
Research Digest
Nu Holdings (NU) reported $5B+ in revenue for Q1 2026, with 135 million customers, and secured conditional approval for a U.S. national bank charter. Quarterly margins came under pressure due to higher credit provisions, which management attributed to seasonality and portfolio growth. The market may be mispricing the sustainability of NU's AI-driven credit expansion.