We recently published a list of the 13 Best High Volume Stocks to Buy Now. In this article, we are going to take a look at where Nu Holdings Ltd. (NYSE:NU) stands against other best high volume stocks.
On May 9, BMO private wealth chief market strategist Carol Schleif joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and the state of the economy. Reflecting on a market decline in April that reached a ~20% drop, Schleif noted that the market recovered and ended only 3% to 4 % down. She described investor reactions during that period as mixed: about 10% were very eager to buy, but another 10% were quite nervous, while the majority remained measured. She emphasized the important distinction between markets and the economy and noted that markets often move ahead of economic realities and quickly shift focus to new topics as part of their discounting mechanism. This is why markets serve as economic indicators and anticipate future developments.
She talked about how individual risk tolerance varies, with some younger clients adopting conservative strategies and some older clients favoring aggressive positions, especially in tech. Schleif acknowledged that tariffs are expected to rise from under 3% to ~10%, but despite this anticipation, she’s confident that markets and companies will adjust to the changes. She noted the unusual shift in US influence, which now extends beyond material control to more intangible domains, and described this shift in responsibility as significant and complex. Schleif also emphasized the value of globally diversified portfolios, which have been challenging to maintain during periods when the US market outperformed. However, she noted that such diversification, which includes fixed income and foreign equities, has provided better performance and protection year-to-date and helps investors weather volatility better than those concentrated solely in US assets.
Our Methodology
We first used stock screeners to compile a list of stocks with high average 3-month volumes. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
Note: All data was collected on May 12.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Nu Holdings Ltd. (NYSE:NU) the Best High Volume Stock to Buy Now?
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Nu Holdings Ltd. (NYSE:NU) provides a digital banking platform. It offers spending, savings & investing, and borrowing solutions. The company also has protection solutions, such as NuInsurance protection solutions, including life, mobile, auto, home, and financial protection insurance policies. Its core growth driver is its Brazilian operations at Nubank, which is the company’s digital bank.
In 2024, Nu Holdings (NYSE:NU) added over 1 million customers per month in Brazil, which served 58% of its population and made the company the third-largest financial institution in the country by customer count. This market has an 83.1% monthly activity rate. In Brazil, Nubank’s high-income segment is also expanding, which is why the company’s premium credit card, Ultravioleta, saw customer numbers increase by 132% year-over-year to ~700,000. Credit card purchase volume grew 106% in Q4 2024.
Nubank is also expanding its Money Platform in Brazil with initiatives like NuMarketplace, NuTravel, and the launch of its MVNO service, NuCel, to further monetize its large customer base. On April 25, Barclays raised the price target on Nu Holdings Ltd. (NYSE:NU) to $16 from $15 while keeping an Overweight rating. The adjustment came after the firm noted Nu’s strength in personal lending.
White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q4 2024 investor letter:
“Nu Holdings Ltd. (NYSE:NU) has recently corrected due to Brazil’s macroeconomic struggles. Nu reports its earnings in U.S. dollars but generates revenue in Brazilian reais, Mexican pesos, and Colombian pesos. The sharp depreciation of these emerging market currencies, coupled with ongoing macroeconomic uncertainty, is making investors uncomfortable. Our due diligence suggests that Nu remains unaffected. Importantly, we continue to believe that Nu is a rare business with a combination of a large market opportunity, a strong moat driven by its superior cost structure, and a brilliant management team.”
Overall, NU ranks 7th on our list of the best high volume stocks to buy now. While we acknowledge the growth potential of NU, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
