Nu Stock Hits Buy Zone After Languishing Below $10 Mark For Years

Ever since Nu Holdings (NU) went public more than two years ago, the Brazilian digital bank has formed a slew of bases — but few would grab the attention of most serious investors. Since its U.S. initial public offering in December 2021, Nu stock has formed two cup-with-handle patterns, consolidated three other times and had six instances where the stock formed a three-weeks-tight pattern.

↑
X

NOW PLAYING
How To Make More Money By Handling Faster Market Rotations

Now, Nu has reached a buy zone out of a flat base. And investors may want to pay attention this time because shares have cracked an important threshold.

Nu stock has languished below the critical $10 level for much of the company’s history in the U.S. market. But earlier this year, Nu stock cracked the $10 mark and stayed above it.

With a client base of 90 million in Brazil alone, the Sao Paolo-based company appears to be picking up steam. The company claims a total of 100 million clients in Brazil, Mexico and Columbia.

Nu Stock: Highest Possible Composite Rating

Nu stock has a best-possible Composite Rating of 99 from Investor’s Business Daily. Its Relative Strength Rating is 95. The latter compares stock performance with the rest of the market over the last year. The company also ranks No. 1 in IBD’s Banks-Foreign industry group. That group claims the 13th spot out of 197 industry groups.

Nu officials did not respond to requests for interviews. But Nu stock’s recent emergence into double-digit territory has captured the attention of Brazilian analysts. It also has caught the eye of legendary investor Warren Buffett. Buffett had more than 107 million shares of the company as of March 31, according to a Berkshire Hathaway (BRKB) filing with the Securities and Exchange Commission.

“Nu’s 90 million client base in Brazil will not grow forever, but it can certainly be explored more than it is today,” said Pedro Leduc, analyst with Itau BBA, in a recent note to clients.

Others are cautious. Santander analyst Henrique Navarro says the company’s current efforts to expand into Mexico may not match its Brazil success.

“We conclude that it is not fully replicable, suggesting that Nu’s ramp-up in Mexico could ultimately be a bit harder than it was in Brazil,” the Nu stock analyst said in his note to clients.

YOU MAY ALSO LIKE:

Google Stock Near Highs As AI Business Explodes | Stocks To Watch

Analysts Don’t Expect Google, These Other Companies To Slow Their Profit Growth | Stocks To Watch

AI Defense Stock In Buy Zone, Serves U.S. Military Branches | Stocks To Watch

Looking For Market Insights? Check Out Our Live Daily Segment | Stocks To Watch

Need A Backhoe? This Online Heavy Equipment Auctioneer Rebounds To Buy Zone | Stocks To Watch