Hey Investor,
Our Best Buys for October are here 🎯
Each month, we look for great companies trading at attractive valuations and highlight three stocks that currently stand out to us.
Since December 2024, we’ve shared 66 Best Buys with our paid members.
Our Best Buys have delivered an average return of 19.4% so far. Several picks have already delivered triple-digit returns 🔥
🚀 AMD: picked at $97.35, now +551%
🚀 ASML: picked at $662.63, now +182%
🚀 Alphabet: picked at $168.95, now +103%
We focus on high-quality businesses with strong fundamentals trading at attractive valuations. As Warren Buffett famously said:
“It’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Learn more about how we score stocks on fundamentals in our Fundamental Scoring Framework article.
To keep looking for the best opportunities, we don't pick the same Best Buy two months in a row.
Now let’s dive into our Top 3 Best Buys for October ✨👇
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice. Please consult the general disclaimer for more details.
#3: Nu Holdings (NYSE: NU)
Our first Best Buy for October is Nu Holdings, one of the fastest-growing digital banks in the world. This is already the fourth time we’ve included Nu, most recently in May. The stock is down 20% YTD and trades 30% below its all-time high from January.
But the business keeps growing fast. Nu continues to add millions of customers across Latin America and recently launched in the U.S., opening another major market for future growth.
The stock has moved lower, but the business keeps moving forward. With plenty of room to grow, we believe Nu looks very attractive at current levels.
What Happened?
Nu’s stock has been under pressure for most of this year. Investors are especially focused on credit risk in Brazil. Nu is growing its lending business and reaching more higher-risk customers. In Q2, the 90+ day NPL ratio increased to 6.9%, with much of the increase being seasonal.
There is also execution risk as Nu expands into new markets. The company is growing fast in Mexico and Colombia and recently launched in the U.S. and introduced Nu Global, its new multi-currency account for customers around the world. This opens new growth opportunities, but also takes Nu well beyond its core Latin American business.
Despite this, Nu keeps delivering strong results. In Q2, the company reached 139 million customers, revenue grew 39% YoY to $5.9 billion, and net income increased 49% to a record $1.1 billion. Its credit portfolio grew 37%, and ROE reached 33%.
Nu is still in a high-growth phase. Revenue is expected to grow around 45% this year to $22.8 billion, followed by another 24% to $28.2 billion in 2027. EPS is expected to grow around 40% this year and another 27% next year. There are very few banks in the world growing as fast as Nu.
Why Nu Holdings Looks Attractive Now
First, we always want to know if we’re looking at a strong business. And Nu clearly is. It scores 80 in our Fundamental Scorecard, which puts it in our High Quality 🔵 category. Nu has strong management, a leading position in digital banking and very strong growth estimates.
So, what are you paying for all that growth? Nu trades at a P/E of 18.4, with a forward GAAP P/E of just 15.6 for 2026 and 12.2 for 2027. This is the lowest forward P/E Nu has ever traded at, even as the company continues to grow very fast.
The PEG ratio is just 0.47, which also shows how attractive the valuation is compared with its expected earnings growth. Analysts see strong upside as well, with an average price target of $18.64, almost 39% above the current share price.
For a high-growth, high-quality business that still has a long way to grow, we believe this valuation looks very attractive. In our view, Nu offers a great combination of quality, growth and valuation.
The Future Investors (Vincent & Stefan) currently hold a position in Nu Holdings.
Fundamental Score: 80 🔵 → High Quality
Current Stock Price: $13.43
The next two? Two strong businesses with massive moats, now attractively priced.
🛡️ One operates in a market with strong demand and very high barriers to entry.
🏗️ The other has built a powerful network that’s almost impossible to replicate.
Ready to discover our #1 and #2 Best Buys?
Get instant access as a paid member 🔓✨
🔥 Upgrade Now and Save 30%!
Get direct access to our other 2 Best Buys for October, all previous Best Buys, our Portfolios & Transactions, all 15+ Deep Dives, all 95+ Stock Battles — and 425+ premium articles.
✅ Trusted by 4,800+ investors.