Nu Holdings drops 35% but shows strong growth potential in Brazil and Mexico markets.

Nu Holdings has seen its market value fall over 35% since January, underperforming other Brazilian banks. Despite this, it remains a high-growth bank with strong return on equity (ROE) and significant expansion opportunities. In Brazil, Nu captures only 7% of the profit pool and has low penetration in small and medium enterprises, indicating untapped potential. Its Mexican operations have reached breakeven with less than 1% market share in an underbanked, fast-growing market. Valued at a 14.7x price-to-earnings ratio for fiscal year 2026 and boasting over 30% ROE, Nu offers attractive value amid ongoing loan and earnings growth.