Neil Patel, The Motley Fool

Sat, Jun 28, 2025, 3:23 PM5 min read

• Fintech company Nu caters to underbanked populations in Latin America, and its growth trajectory has been impressive.

• All banks are exposed to macroeconomic and geopolitical risks, but Nu has so far navigated the volatility in its markets.

• Its earnings continue to soar, which makes the stock look like a good deal at its current valuation.

• 10 stocks we like better than Nu Holdings ›

American investors might not be too familiar with Nu Holdings (NYSE: NU). True, it's a large-cap company with a $65 billion market capitalization currently. And yes, Warren Buffett's Berkshire Hathaway owned a stake in it for about three years. But because it operates in Latin America, Nu probably flies under the radar for many here in the U.S.

This fintech stock has soared by an impressive 230% in the past three years (as of June 25), although it has taken investors on a volatile ride along the way. But should you buy shares right now while they trade below $15?

Because of how mature the financial services industry is, there aren't that many companies in the space that are rapidly rising up through its ranks. Here's where Nu stands out. Its leaders saw an opportunity to target unbanked and underbanked populations in Latin America, providing them with a digital-first platform that offers bank accounts, brokerage services, credit cards, loans, and crypto trading, among other things.

As of March 31, Nu had 119 million customers, the vast majority of them in its home market of Brazil. The company now counts a remarkable 59% of that country's adult population as its customers. In the last three years, Nu has essentially doubled its customer base.

Nu also operates in Mexico and Colombia, both markets that have sizable potential. Combined, they have a population of 185 million people -- 13 times greater than the number of customers Nu has attracted so far in those countries.

The leadership team is optimistic. According to their estimates, Nu has only captured 5% of its gross profit total addressable market in Brazil. One key pillar of its growth playbook is to constantly innovate. Nu just launched a service offering private payroll loans in Brazil, taking on the established players in that part of the industry.

It also has a travel service (NuTravel) and a mobile phone service (NuCel). These initiatives clearly show its willingness to venture beyond financial services. It might have plans to enter other new markets down the road, further expanding revenue potential. However, so far, executives are playing it close to the vest.