Financial stocks have been hit pretty hard this year, as the sector is just one of two (healthcare is the other) that is trading in the red year to date. That makes it a great place to find opportunities to invest in good companies with stocks trading at a discount.
One of those good, 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 about 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 stock with strong long-term growth potential.
Nubank has been around since 2013, but it didn’t go public until 2021. Since then, the stock has had steady growth, averaging about an 8% return on an annualized basis over the past five years.
It was founded in Brazil on the idea that people would embrace digital banking on their smartphones, filling a void in the marketplace. It started out offering a no-fee digital credit card and soon expanded to 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. That is 15% higher than the previous year. It is the largest bank in Brazil by number of customers, and the largest credit card issuer in Mexico.
The company saw revenue climb 45% and net income surge 45% in 2025, with a return on equity of 33%. That’s high for a bank, where a good ROE is around 15%. That is because of its digital, asset-light model, which has a monthly average cost of $0.80 per customer and a low efficiency ratio of 19.9%. This means it spends only that percentage for every dollar of revenue.
Along with its rapid growth and incredible efficiency in Latin America, Nubank will soon be expanding into the U.S. In January, the company got conditional approval from the Office of the Comptroller of the Currency to launch Nubank N.A. in the United States. It still needs a few more approvals, but the OCC approval is huge and puts Nubank N.A. on a path to launch sometime in 2027 in the U.S.
