Identifying winning businesses at the right time can be helpful for investors. All it takes is confidence, patience, and the ability to hold on to changing times. Your portfolio will thank you.
It’s worth taking a closer look at this fintech business, which shows no signs of slowing down. Its shares may trade 21% off their high, but are up 216% over the past three years (as of March 5). There are reasons to believe that the winning returns will continue.
Will AI create the world’s first trillionaire? Our team recently released a report on one little-known company, called “Indispensable Monopoly” that provides essential technology needed by both Nvidia and Intel. Continue »
Here’s one monster stock to hold for the next five years.
Nu Holdings share price (NYSE: NU) continues to make it easy for investors to be optimistic. Its recent financial results have been impressive.
During the fourth quarter of 2025 (ended December 31), revenue jumped 45% year over year to $4.9 billion. This was an acceleration compared to Q3. Nu added 4 million new customers during this period, bringing the total to 131 million.
Its profits grew at a faster rate than the top line. Net income increased 50% in Q4. Nu has achieved incredible unit economics that support its profits. The average cost to serve a customer of $0.80 is significantly less than the average revenue per customer of $15.
Until now, Nu was only active in Latin America. It has a good position in the domestic market of Brazil, where 62% of adults are customers. It is also building an emerging presence in Mexico and Colombia. Using a digital bank that benefits from technological progress in an emerging area has supported Nu’s expansion.
Nu is now heading to the US It just got a bank roll. Works will begin within 18 months. But this will invite stiffer competition in Latin America’s more developed financial services industry.
“We’re going to have a very focused strategy,” CEO David Vélez said on the Q4 2025 earnings call about the US.
Perhaps this is the stage of maturity that sets the stage for future growth to be measured. Sell-side analysts expect revenue to grow at a compound annual rate of 32% between 2025 and 2028.
It’s hard to believe that with Nu’s strong fundamentals, the stock is still trading at a forward earnings ratio of 18.7. This is cheaper than S&P 500 index. In my opinion, this setup makes Nu a no-brainer stock to buy and hold.
However, the market may be thinking about the risks. Like any bank, Nu must prove that its credit quality can withstand various economic conditions, as it has a large loan book of $33 billion, most of which includes a portfolio of credit cards. There is no cause for concern yet, as non-performing loans improved year-on-year in Q4.
While this is something to watch closely, I give the leadership team the benefit of the doubt. And that supports my argument for buying the Nu.
Before buying stock in Nu Holdings, consider the following:
I The Motley Fool Stock Advisor a team of analysts has just identified what they believe to be 10 best stocks for investors to buy now… and Nu Holdings was not one of them. The 10 stocks that made the cut could produce huge gains in the coming years.
Think about when Netflix made this list on December 17, 2004… if you invested $1,000 during our recommendation, you will have $534,008!* Whenever Nvidia made this list on April 15, 2005… if you invested $1,000 during our recommendation, you will have $1,090,073!*
Now, it’s worth noting Stock Advisor’s the average total return is 949% – outperformed the market by 190% for the S&P 500. Don’t miss the latest top 10 list, available via Stock Advisorand join an investment community built by individual investors for individual investors.
See 10 stocks »
*The Stock Advisor returns as of March 10, 2026.
Neil Patel has no position in any of the specified stocks. The Motley Fool recommends Nu Holdings. The Motley Fool has a policy of disclosure.
The One Monster Stock to Hold for the Next 5 Years was originally published by The Motley Fool
