Even the best-performing investments can take a breather at any moment without notice. There's a successful business, whose shares have soared 235% in the past three years (as of March 24), that provides a great example.
This winning fintech stock hit a peak price of $18.76 on Jan. 28. In the approximately eight weeks since, shares have come down 24%. Investors should take notice.
Continue reading to learn more about this glorious opportunity that could realistically double in the next three years.
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The fundamentals look great
Stocks bounce around for any number of reasons. While investors' heads can spin trying to figure out why, they should always turn their focus to the company's fundamentals. In Nu Holdings' (NU 0.58%) case, the financial performance is impressive.
The Latin American digital banking leader posted revenue of $16.3 billion in 2025, up 45% year over year. Its net income jumped 51%. And the business went from 114 million customers at the start of 2025 to 131 million as of Dec. 31.
Nu identified an opportunity to provide basic financial services to a population that desperately needed these kinds of offerings. It has a strong presence in Brazil, where 62% of the adult population are Nu customers. The company also has a presence in Mexico and Colombia. And Nu recently announced plans to enter the U.S.
NYSE: NU
Key Data Points
Swinging for a double
Realistically, this stock could double over the next three years. The key catalyst may be earnings growth. According to consensus analyst estimates, Nu's diluted earnings per share are projected to rise at a compound annual growth rate of 36% per year between 2025 and 2028. On an absolute basis, this translates to a 153% bottom-line gain, which is fantastic.
This variable alone could take Nu's shares from around $19 today to $38. This may happen even if profits ultimately grow at a slower pace than analysts forecast. That provides a margin of safety.
The other factor to consider is the valuation. Nu's stock currently trades at a forward price-to-earnings ratio of 17.8. This is cheaper than the S&P 500 index.
This adds even more of a margin of safety. That's because if the valuation stays constant and doesn't expand, the stock could still double in three years.
Of course, there's no such thing as a guaranteed outcome in the stock market. Investors should always be mindful of what can go wrong. In this instance, Nu, like any other banking entity, faces risks related to macro headwinds that can pressure lending activity and raise loss rates.
However, the current setup provides a compelling risk/reward profile for interested investors.
