We recently compiled a list of the 13 Best Performing Bank Stocks So Far In 2025. In this article, we are going to take a look at where Nu Holdings Ltd. (NYSE:NU) stands against the other bank stocks.
The banking sector seems to be performing well in 2025 as the economy has been stronger than expected. Banking and financial services companies are taking more chances and investing in growth, especially in AI. At the same time, central banks around the world continue to lower interest rates, which is further helping the banks.
READ ALSO: 10 Unrivaled Stocks of the Next 5 Years and 10 Best Low Priced Technology Stocks To Buy Now.
In December 2024, Seana Smith, the anchor of Yahoo Finance’s morning show, pointed out that it might be a good time to buy bank stocks. Heading into 2025, that was the overwhelming consensus among well-known strategists. The reasons for optimism around bank stocks included a strong economy, expected deregulation under President-elect Donald Trump, attractive stock prices, and lower interest rates.
Brian Belski, Chief Investment Strategist and leader of the Investment Strategy Group at BMO Capital Markets, noted in his 2025 outlook that financial stocks are still “drastically unloved,” despite compelling valuations and strong earnings growth expectations. Aadil Zaman from Wall Street Alliance Group mentioned that the Federal Reserve’s expected drop in interest rates would result in greater investment banking activity.
Another reason for the sky-high enthusiasm was that historically, financial stocks have performed well under Republican administrations because of expectations for looser regulation, which creates a more favorable environment for banks.
Methodology
To compile our list of the 13 best-performing bank stocks so far in 2025, we used the Finviz stock screener to look for bank companies with the best year-to-date performance. We narrowed down our list by looking for the best-performing stocks with a market capitalization of more than $2 billion. The 13 best-performing bank stocks so far in 2025 were then ranked in ascending order based on their year-to-date performance as of February 14, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding the best-performing stocks, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a busy executive’s hand tapping the screen of a digital device, signifying the development of a digital retail banking solution.
Nu Holdings Ltd. (NYSE:NU)
Year-to-Date Performance: 29.40%
Number of Hedge Fund Holders: 54
Nu Holdings Ltd. (NYSE:NU) is a digital banking company that offers one of the world’s largest digital financial services platforms to serve customers in Brazil, Mexico, and Colombia. The company has a 100% digital model and it leverages data and proprietary technology to develop innovative financial products and services. Nu Holdings Ltd. (NYSE:NU) ranks among the best-performing bank stocks so far in 2025.
Infuse Asset Management, an investment management company, has a positive outlook on Nu Holdings Ltd. (NYSE:NU). In its Q4 2024 investor letter, the investment management firm noted that the company has an ambitious goal of becoming a leading global company and it successfully surpassed 100 million customers at the start of Q2 2024. Nu Holdings Ltd. (NYSE:NU) is marching towards the next 100 million as it is focused on expanding its market share in Mexico and continues to develop its super app in Brazil. The company has expanded its services for high-income clients, who can now book flights, shop, access payroll loans, invest in ETFs, exchange currency, get business loans, and even get cell phone plans. Infuse Asset Management is confident in the company’s management team and also noted that Nu Holdings Ltd. (NYSE:NU) is growing its revenue by over 30% and margins are approaching 30%.
The company is strategically focused on launching appealing products and expanding its customer base. Recently, on January 21, Nu Holdings Ltd. (NYSE:NU) announced that it has reached 10 million customers in Mexico after doubling its customer base over the past 12 months. Since entering the market in 2019, the company has expanded its products and services from credit cards to include savings accounts, debit cards, and personal loans. The company’s digital model allowed it to reach over 98% of Mexican municipalities, including communities without traditional banks. To accommodate the needs of the local market, which relies heavily on cash, Nu Holdings Ltd. (NYSE:NU) has created a network of more than 30,000 cash withdrawal and deposit locations.
Overall, NU ranks 5th on our list of the best-performing bank stocks so far in 2025. While we acknowledge the potential of NU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
