Nu Holdings stock worth a look, Barron’s says
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You can’t please all of the people all of the time, but Nu Holdings stock has done enough to capture the eye of both Warren Buffett and Cathie Wood, investors at polar extremes of the investing spectrum, Teresa Rivas writes in this week’s edition of Barron’s. The company is the owner of Nubank, Latin America’s largest financial-technology bank focusing on the large population of underserved consumers. The growth portion of the equation comes from Nu’s rapidly expanding profits, as users leapfrog from cash to the digital and credit age, while a recent pullback provides a more compelling valuation for new investors, the author says. With Nu stock up some 60% this year, to a recent $13.43, and trading at 24 times forward earnings, value investors might be wondering where they fit into the picture. Yet after a modest pullback at the end of September, that forward price/earnings ratio is well below its triple-digit average over the past five years, and not far off its low of just under 19 times, creating an attractive entry point, the publication adds.
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