Financial stocks have been hit hard this year, as the sector is only one of two (healthcare being the other) that is trading in the red so far this year. That makes it a great place to find opportunities to invest in good companies with stocks trading at a discount.
One of those good and cheap stocks to consider is Nu Holdings (NYSE: NU). Nu Holdings is a Brazil-based neobank offering digital and online banking services in Brazil, Colombia, Mexico and, soon, the United States. It operates under the Nubank brand.
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The stock price is down approximately 13% so far in 2026 and is trading at just $14.61 per share. Its cheap entry price and low valuation make it a good candidate for investors looking to buy shares of a cheap, undervalued fintech with strong long-term growth potential.
Nu boy on the block
Nubank has been around since 2013, but didn’t go public until 2021. Since then, the stock has seen steady growth, with an average return of around 8% annualized over the past five years.
It was founded in Brazil with the idea of ​​people adopting digital banking on their smartphones, filling a gap in the market. It started by offering a fee-free digital credit card and soon expanded into full-service digital banking. Some 13 years later, the founders have been proven right, as the company has rapidly expanded its customer base.
In the most recent quarter, Nubank added 4 million new customers, bringing its total to 131 million. This is 15% more than the previous year. It is the largest bank in Brazil by number of clients and the largest credit card issuer in Mexico.
The company saw revenue growth of 45% and net income growth of 45% in 2025, with a return on equity of 33%. This is high for a bank, where a good ROE is around 15%. This is due to its asset-light digital model, which has an average monthly cost of $0.80 per customer and a low efficiency ratio of 19.9%. This means you spend only that percentage for every dollar of income.
American expansion
Along with its rapid growth and incredible efficiency in Latin America, Nubank will soon expand to the US. In January, the company obtained conditional approval from the Office of the Comptroller of the Currency to launch Nubank NA in the United States. It still needs a few more approvals, but the OCC approval is huge and puts Nubank NA on track to launch sometime in 2027 in the US.