Value
7.0/10data confidence 83%| Component | Sub-score |
|---|---|
| P/E | 6.2 |
| P/S | 4.3 |
| Fwd P/E | 9.0 |
| PEG | 8.2 |
| Analyst target | 7.5 |
- ▸Forward P/E: 11.8x
- ▸PEG: 0.80
- ▸Attractively valued
NU · Why this verdict
Why Nu Holdings (NU) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score6.6/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Nu Holdings has missed analyst EPS estimates in 2 consecutive quarters, with misses of -7.97% and -2.72%, suggesting that either credit costs are running above model or operating expense growth is outpacing revenue. Bear case | Nu returns to meeting or beating analyst EPS estimates in at least 2 of the next 4 quarters as operating leverage improves. | →Stable |
| CounterThe average EPS surprise across all 4 recent quarters is only -1.1%, indicating the miss magnitude is small and the company is tracking very close to consensus, with one beat and one inline quarter offsetting the misses. | ||
Nu Holdings is delivering 44% revenue growth year-over-year with a return on equity of 30% and a perfect growth score of 10.0, ranking best-in-class versus regional bank peers on both margins at 42% and growth, establishing it as one of the fastest-growing financial services companies in the peer group. Peer-rank breakdown | Revenue growth rate remains above 30% year-over-year and return on equity stays above 20% over the next 12 months. | →Stable |
| CounterGrowth at this rate in financial services is difficult to sustain at scale; credit losses could accelerate as the loan portfolio matures and the customer base expands into higher-risk segments. | ||
Recent news sentiment scored -1.00, triggering a negative news modifier that moved the assessment from hold to sell, suggesting recent news flow contains materially negative signals about near-term business conditions. Warnings | News sentiment recovers above 0 and the negative modifier is removed within 12 months as the underlying news driver resolves. | →Stable |
| CounterThe negative sentiment was based on a small news sample (n=1 per the LLM sentiment score of -0.50) and may reflect a single negative article rather than a systematic deterioration in business conditions. | ||
Nu Holdings trades at a forward price-to-earnings ratio of 10.8x with a PEG ratio of 0.73, placing it in the attractively valued category for a 44%-growth financial services company, while the stock remains below its 200-day moving average in a death cross recovery pattern. Valuation breakdown | Price recovers above the 200-day moving average within 12 months and reaches the analyst consensus target of $16.33, representing approximately 31% upside. | →Stable |
| CounterBrazilian and Latin American consumer fintech stocks trade at persistent discounts due to currency risk, political risk, and credit cycle uncertainty that cannot be valued away using simple price-to-earnings metrics. | ||
Nu Holdings has missed analyst EPS estimates in 2 consecutive quarters, with misses of -7.97% and -2.72%, suggesting that either credit costs are running above model or operating expense growth is outpacing revenue.
→StableBear case
- Expectation
- Nu returns to meeting or beating analyst EPS estimates in at least 2 of the next 4 quarters as operating leverage improves.
CounterThe average EPS surprise across all 4 recent quarters is only -1.1%, indicating the miss magnitude is small and the company is tracking very close to consensus, with one beat and one inline quarter offsetting the misses.
Nu Holdings is delivering 44% revenue growth year-over-year with a return on equity of 30% and a perfect growth score of 10.0, ranking best-in-class versus regional bank peers on both margins at 42% and growth, establishing it as one of the fastest-growing financial services companies in the peer group.
→StablePeer-rank breakdown
- Expectation
- Revenue growth rate remains above 30% year-over-year and return on equity stays above 20% over the next 12 months.
CounterGrowth at this rate in financial services is difficult to sustain at scale; credit losses could accelerate as the loan portfolio matures and the customer base expands into higher-risk segments.
Recent news sentiment scored -1.00, triggering a negative news modifier that moved the assessment from hold to sell, suggesting recent news flow contains materially negative signals about near-term business conditions.
→StableWarnings
- Expectation
- News sentiment recovers above 0 and the negative modifier is removed within 12 months as the underlying news driver resolves.
CounterThe negative sentiment was based on a small news sample (n=1 per the LLM sentiment score of -0.50) and may reflect a single negative article rather than a systematic deterioration in business conditions.
Nu Holdings trades at a forward price-to-earnings ratio of 10.8x with a PEG ratio of 0.73, placing it in the attractively valued category for a 44%-growth financial services company, while the stock remains below its 200-day moving average in a death cross recovery pattern.
→StableValuation breakdown
- Expectation
- Price recovers above the 200-day moving average within 12 months and reaches the analyst consensus target of $16.33, representing approximately 31% upside.
CounterBrazilian and Latin American consumer fintech stocks trade at persistent discounts due to currency risk, political risk, and credit cycle uncertainty that cannot be valued away using simple price-to-earnings metrics.
TrendMatrix Research · core thesis
Engine thesis — one sentence
Nu Holdings is delivering 44% revenue growth and a 30% return on equity, ranking best-in-class among regional bank peers on both margins and growth, but faces a negative news modifier from recent sentiment of -1.00, consecutive earnings misses, and is trading below the 200-day moving average in a recovering downtrend.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 3.2 |
| Gross margin | 0.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Moat | 6.5 |
| Piotroski F | 4.4 |
- ▸Excellent ROE: 30%
- ▸Strong margins: 42%
Growth
10.0/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 10.0 |
| EPS growth | 10.0 |
- ▸Strong growth: 44% YoY
Momentum
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 2.4 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 3.7 |
- ▸Overbought bear rally (RSI 79)
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA, MA slope -1.2%/30d — confirmed downtrend
Sentiment
7.2/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.5 |
| Price target | 8.6 |
| erm sentiment | 5.0 |
- ▸Analyst upside: 31%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.0 |
- ▸Negligible insider selling — $257,042 (0.000% of mkt cap)
Peer rank
6.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 0.6 |
| quality rank | 9.5 |
| growth rank | 9.0 |
- ▸Superior ROE vs peers
- ▸Best-in-class margins
Technical
2.0/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.5 |
| support resistance | 1.3 |
| 52w position | 4.3 |
Risk (lower is worse)
6.9/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.9 |
| days to cover | 8.6 |
| volatility | 4.1 |
| put call | 9.8 |
| implied vol | 3.5 |
| beta | 7.3 |
Catalyst
3.0/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 0.0 |
| earnings timing | 5.0 |
| surprise avg | 2.0 |
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (7)
- MOMENTUM:6.4>=5.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:39d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:1.2<1.5@spot
Warning (1)
- DEATH_CROSS:momentum=6.4>=5.0 recovering
Reward-to-Risk
1.19
Upside
+17.9%
Downside
15.0%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 79
EdgeNo clear edge — No clear edge identified
SuitabilityModerate — Balanced profile
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:6.4>=5.5. Top dim: Growth at 10.0; weakest: Technical at 2.0. No conviction either direction.
The strongest dimensions are Growth at 10.0, Sentiment at 7.2, and Value at 7.0; the weakest are Technical at 2.0, Catalyst at 3.0, and Insider at 5.0. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of 1.19 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Best In Class Growth And Roe
Trip ifRevenue growth rate falls below 25% year-over-year or return on equity declines below 15% for 2 consecutive quarters.
- P2Negative News Sentiment Modifier
Trip ifNews sentiment remains below -0.5 for 2 consecutive reporting periods or a second negative modifier event is triggered within 12 months.
- P3Consecutive Earnings Misses
Trip ifEPS surprise falls below -10% in at least 2 of the next 4 quarters.
- P4Attractive Valuation Below 200 Day Ma
Trip ifStock price falls below $10 or the 200-day moving average continues to decline by more than 5% over any 60-day period.