IPO Stock Of The Week Nu Holdings (NU) is moving out of buy range after surging to new highs in recent sessions. The Warren Buffett stock is on Investor’s Business Daily’s IPO Leaders screen.
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Nu Holdings provides a digital banking platform. It targets a significant Brazilian population that is without the services of a financial institution. That offers a rich opportunity for the bank.
On Aug. 13, Nu reported that it earned 10 cents per share on sales of $2.85 billion. Nu’s earnings jumped 115% vs. the year-ago period, and revenue rose 52%.
Warren Buffett owned more than 107 million shares of Nu stock as of August, according to a Berkshire Hathaway (BRKB) filing with the Securities and Exchange Commission. That makes Nu stock a top-10 position in Buffett’s portfolio, based on the number of shares owned. Buffett invested in Nu Holdings around its December 2021 initial public offering, which priced Nu stock at 9.
With the company’s earnings set to surge 93% this year and an additional 44% in 2025 — and the stock enjoying strong price action — IBD Stock Checkup shows that Nu Holdings possesses a best-possible 99 IBD Composite Rating.
Warren Buffett Stock: Passing The Buy Zone
After finding support at its 200-day moving average earlier this month, Nu broke out past an alternative buy point at 13.64. There is no proper base because the length of the consolidation was too short, only three weeks long, according to IBD MarketSurge analysis. The 5% buy zone goes up to 14.43. Shares were above the buy zone in late-Friday trading.
A bullish signal is that the latest price action undercut the lows of the previous base. That will reset the base count and makes the next base a first-stage pattern. First-stage bases are more likely to net bigger gains than later-stage formations.
Meanwhile, the relative strength line for the Warren Buffett stock hit new highs along with the stock price. That’s a bullish signal of stock market outperformance.
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on top AI stocks and the stock market.
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