NU Stock Analysis: Buy, Sell, or Hold?
NU - Nu Holdings Ltd.
$14.26
-0.22 (-1.52%)
▼
5d:
-1.52%
30d:
-1.72%
90d:
-15.17%
BUY
HIGH Confidence
Analysis Updated: May 7, 2026 12:00 AM ET
Earnings: May 12, 2026
3d
Smart Money Accumulation
NU is down 3.3% this week, but smart money is accumulating calls. Top strike: $21 2026-07-17 with 33,895 OI. Call ratio: 71% View Scanner →
Strength: 9.5/10
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1 traders called NU this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: NU appears deeply undervalued. Market expects -8.8% annual earnings decline despite 61% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: NU appears deeply undervalued. Market expects -8.8% annual earnings decline despite 61% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$36.60
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$22.72
37.2% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: NU is currently trading at $14.26, which is considered slightly low relative to its 30-day fair value range of $14.15 to $15.06. From a valuation perspective, the stock is trading at a discount (Forward PE: 12.9) compared to its historical average (17.0). Remarkably, the market is currently pricing in an annual earnings decline of 8.8% over the next few years. This pessimistic expectation contrasts with the company's recent 60.9% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, NU is in a strong downtrend. The price is currently testing key support at $14.04. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $19.87 (+39.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, NU is in a strong downtrend. The price is currently testing key support at $14.04. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $19.87 (+39.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$14.15 -
$15.06
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 39.4% below Wall St target ($19.87)
Trading Range Analysis
30-Day Trading Range
$14.15 -
$15.06
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$14.04
Resistance Level
$14.84
Current Trend
Strong Downtrend
Technical data as of
May 7, 2026
Fundamental Context
Forward P/E (Next Year Est.)
12.90
Wall Street Target
$19.87
(+39.4%)
Revenue Growth (YoY)
43.9%
Earnings Growth (YoY)
60.9%
Profit Margin
41.0%
Valuation Discount vs History
-8.8% cheaper
PE vs Historical
12.9 vs 17.0
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-8.8%
(market-implied from PE analysis)
1-Year Target
$13.01
(-9%)
2-Year Target
$11.86
(-17%)
3-Year Target
$10.82
(-24%)
3-Yr Target (if PE normalizes)
(PE: 13→17)
$14.26
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 32.3%)
$56.15
(+294%)
Base:
(SPY PE: 12.9, Growth: 32.3%)
$33.01
(+132%)
Bear:
(PE: 11.0, Growth: 32.3%)
$28.06
(+97%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (25x PE), but valuation improves significantly next year (13x PE) as earnings recover.
Trailing PE: 24.97 | Current EPS (TTM): $0.58
Bull Case
$30.36
(+113%)
Analyst growth 90.6%, PE expands to 27.5
Base Case
$27.60
(+94%)
Market implied 90.6%, PE stable at 25.0
Bear Case
$9.85
(-31%)
Severe decline -20.0%, PE contracts to 21.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 12.9 to 17.0
Stabilization Target:
$18.79
(+31.8%)
PE Expansion Potential:
+31.8%
Share & Embed Analysis
Last updated: May 08, 2026 7:11 AM ET
Data refreshes hourly during market hours. Next update: 8:11 AM
Data refreshes hourly during market hours. Next update: 8:11 AM
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Technical Signals Check
Is NU showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Cristina Helena Zing Jun…
SELL
300000 shares
2026-03-23
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Advanced NU Option Strategies
Professional options setups generated by AI based on today's NU price and gamma walls.
