Here Are My Top 2 Financial Stocks to Buy Now: Nu Holdings and SoFi Technologies
In the rapidly evolving world of consumer finance, growth and market share gains remain pivotal indicators of long-term investment success. Inspired by investing legend Peter Lynch’s philosophy, investors are advised to focus on companies that not only grow but also capture increasing market share. Two standout fintech companies exemplifying these qualities today are Nu Holdings and SoFi Technologies. These firms are leading innovation and expansion in financial technology, making them compelling buys for investors looking to capitalize on the future of finance.
Nu Holdings: A Dominant Force in Latin America’s Fintech Boom
Nu Holdings (NYSE: NU) is the parent company of Nubank, a financial powerhouse revolutionizing personal banking across Latin America. With over 106 million active users by the end of Q3 2025—a significant leap from just 3 million in 2017—Nu Holdings has become a dominant player in Brazil, Colombia, and Mexico. The company’s commitment to customer-centric services, including an intuitive mobile app, less predatory lending practices, and free debit cards, has driven its rapid adoption among consumers dissatisfied with traditional legacy banks.
The company’s financial performance mirrors its user growth. Over the past five years, revenue has soared nearly 2,000%, reaching close to $13 billion over the last 12 months. Net income stands at $2.5 billion, despite ongoing heavy investments in marketing and product innovation intended to sustain growth momentum. Currently, Nu Holdings trades at a price-to-earnings (P/E) ratio of 32.6, which is considered a premium for a bank. However, with continued growth and improved operating leverage anticipated, this ratio is expected to decline, potentially increasing the stock’s attractiveness.
Key Data for Nu Holdings
- Market Cap: $70 billion
- Current Price: $14.24 (down 1.79%)
- 52-week Range: $11.71 – $18.98
- Volume: 230K shares
- Average Volume: 53 million shares
SoFi Technologies: Leveraging Scale for Profit Growth
SoFi Technologies (NASDAQ: SOFI) has experienced significant volatility recently, with its stock falling approximately 39% from previous highs following its January earnings report. The stock’s earlier surge reflected strong investor enthusiasm, and the recent pullback may present an opportunity for buyers.
Financially, SoFi is impressively executing on its growth strategy. The firm’s adjusted revenue increased 37% year-over-year to hit $1 billion in the last quarter, while pre-tax income more than doubled to $526 million in 2025 compared to 2024. SoFi’s customer base is expanding steadily, with membership rising by 1 million quarter-over-quarter to reach 13.6 million at the end of Q4 2025. This continued customer influx is likely to fuel further revenue expansion.
Similar to Nu Holdings, SoFi is trading at a premium, boasting a P/E ratio around 52. Still, as revenue grows and operational efficiencies improve, the P/E ratio should contract, making the stock more appealing. The company’s hybrid approach, combining technology-enhanced financial products and services, positions it well to benefit from ongoing disruption in the consumer finance space.
Key Data for SoFi Technologies
- Recent Stock Price: $15.93 (down 13.26%)
- Revenue Growth: 37% year-over-year
- Pre-tax Income: Doubled in 2025 vs. 2024
- Membership Base: 13.6 million as of Q4 2025
A Long-Term Investment for Growth and Market Share Opportunities
Both Nu Holdings and SoFi Technologies epitomize the fintech revolution by delivering innovative financial products that attract millions of customers and generate strong revenue growth. Their strategies emphasize customer acquisition, user-friendly digital platforms, and scalable operations—key ingredients for long-term success.
Investors looking to capitalize on fintech disruption should consider buying and holding Nu Holdings and SoFi stocks for the next decade. With solid fundamentals and expanding market footprints, these companies offer the potential for impressive portfolio gains as they continue to disrupt traditional financial services and capture larger shares of the market.
About the Author:
Brett Schafer is a contributing stock market analyst for The Motley Fool, specializing in consumer goods, financials, technology, and industrial sectors. A self-taught investor and host of the "Chit Chat Stocks" podcast since 2018, Brett holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His research has been featured nationally, including The Wall Street Journal.
The Motley Fool recommends Nu Holdings. The author holds no position in the mentioned stocks at the time of publication. Investors should conduct their own research or consult with a financial advisor before making investment decisions.