Nu Holdings, Latin America's largest digital bank, is down 28% this year as of Oct. 28, despite fast growth and recent moves including an online international bank, a U.S. market entry and a bank charter obtained in Mexico and approved in the U.S. Second-quarter revenue rose 39% and net income rose 49% to a record $1.1 billion, with deposits of $45.3 billion and 139 million customers. The shares fell in September after Bloomberg reported talks to buy U.K. digital bank Monzo, and fell again after President Lula da Silva's election in Brazil, which the market had not expected. The stock trades at a P/E of 17 and a price-to-book ratio of 4.6, and the first investor day on Dec. 8 could address these concerns. The author calls it a potential long-term candidate.
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