Fintech firms as a group may no longer occupy the space at the top of investors’ lists of most-hyped stocks anymore, but that’s not to say that individual stand-outs in this industry can’t continue to command massive interest. Notably, there still seems to be plenty of room for companies jostling for positions as the market matures. This means that there is potential for particularly hot names to generate impressive returns over a short period.Two companies in the fintech realm stand above many others for their uncommonly large gains in the last year. Latin American digital bank NuBank, formally known as Nu Holdings Ltd. NYSE: NU, has climbed an impressive 42% in the year leading to February 7, 2025. SoFi Technologies Inc. NASDAQ: SOFI, the direct bank and financial platform provider, has risen even further, returning nearly 85% over the same period.Below, we examine these two stocks against one another and a more established leader in the financials sector, Chubb Ltd. NYSE: CB, for investors weighing these companies as potential targets.Nu Holdings: Major Growth and Shifting DomicileNu has been one of the major success stories of the fintech space in recent years. The neobank company managed to break into the established banking space of its native Brazil, enticing customers with its easy-to-use, all-encompassing digital financial services platform.NU Stock Forecast Today12-Month Stock Price Forecast:$15.6312.07% UpsideHoldBased on 10 Analyst RatingsHigh Forecast$19.00Average Forecast$15.63Low Forecast$11.00NU Stock Forecast DetailsThis has led to massive customer base growth and a steady history of high double-digit revenue gains—in the latest quarter to be reported, Nu announced 56% year-over-year revenue growth. At this point, about 100 million Brazilians use Nu, or roughly half of the adults living in the country.Investor interest in Nu really surges, though, in the possibility of its continued expansion into new markets. Nu already has made quick inroads in Mexico and other parts of Latin America. As 2025 gets underway, the company has announced its intention to move its legal domicile to the U.K. as it endeavors to expand into the U.S. market.Despite its rapid stock price gains in the last several quarters, five out of 10 analysts continue to rate Nu a Buy, and shares of NU could rise by nearly 14% above current levels to a consensus price target of $15.63. Investors will no doubt be watching the company closely to see if it can maintain its rapid growth going forward.SoFi Technologies: Compelling Model and Performance, But Overvalued?SoFi offers a one-stop financial services platform combining loan refinancing, traditional bank accounts, payment services, and more into a single solution. The company reported fourth-quarter earnings in late January, including record adjusted net revenue growth of 24% and $1.3 billion in student loan originations, a 71% year-over-year improvement.SoFi Technologies Stock Forecast Today12-Month Stock Price
Mer. Feb 12th, 2025
