Is This Fintech Stock a Millionaire Maker?

Investors love talking about their most successful stock picks. These home-run opportunities, which are certainly difficult to spot early on and even harder to hold on through the ups and downs, can produce incredible wealth. The financial services industry might not be the first play you look to spot these ideas.

However, there's a promising fintech stock investors need to pay attention to. Can this company make you a millionaire?

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Becoming a powerful force in the Latin American banking sector

Nu Holdings (NYSE: NU) is a dominant force in the banking sector in Latin America, leaning on its technological prowess and digital-only business model to serve its user base. It ended 2025 with 131 million customers, a sizable figure that has climbed 75% in the past three years. In its home country of Brazil, 62% of the adult population is a customer.

Nu's fantastic success in Brazil is carrying over to other markets as well. The business has 14 million customers in Mexico (entered in 2019) and 4 million in Colombia (2020), both relatively newer countries for Nu. These figures have grown rapidly since launch, which clearly indicates the demand from citizens for the products and services Nu offers.

What's more, the company plans to start operations in the U.S. next year, after it received conditional approval for a national bank charter. It would be silly to assume that Nu can achieve the same kind of monster growth in the U.S. that it has in Latin America, though. The financial services industry here is not as prone to disruption as ones in the countries Nu serves.

Nonetheless, the growth trajectory is eye-popping. Nu's revenue increased at a compound annual rate of 49% between the fourth quarter of 2022 and Q4 2025. This certainly played a factor in the stock price rising 234% in the past 36 months (as of April 10).

A winning recipe for strong investment returns

From my perspective, it's incredibly rare for investors to find businesses that can turn them into millionaires. I don't think Nu is going to get your net worth into the seven-figure club. And that's not a problem. The best investors try to build diversified portfolios that can perform well over the long term, producing steady gains along the way.

This doesn't mean Nu should be completely discarded. In fact, this might be one of the most exciting opportunities in the market today. That's because the valuation is compelling, with shares trading at a forward price-to-earnings ratio of 17.8, helped by the stock's 20% decline from its January peak.

Moreover, Nu's profits are expected to be much higher in the future, which introduces a powerful tailwind for shareholders seeking strong returns. Wall Street analysts' consensus estimates call for diluted earnings per share to grow 35% between 2025 and 2028. That would be an incredible pace.

While Nu isn't going to be a millionaire-making stock, it deserves a closer look from growth-oriented investors.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings. The Motley Fool has a disclosure policy.