So far there has been a lot of excitement on the stock market in 2025, usually related to artificial intelligence (AI). The Deepseek launch surprised investors a few weeks ago, and since then there has been a stream of high-profile win reports such as those of Apple” AmazonAnd Alphabet.
Despite all that, the S&P 500 Index has risen only 3% this year. It is just out of all time and the ratings now look expensive. Yet there are still bargains and excellent shares with long -term potential. Let’s take a look Now Holdings(NYSE: NOW) And see if it should be on your buying list this year.
Now great growth has demonstrated since he became a public company in 2021. It has grown its income with high double digits and the net result has also risen with a high rate, by $ 303 million to $ 553.4 million years after year in the third quarter.
The company operates as an all-digital bank in its home country of Brazil, as well as the newer markets of Mexico and Colombia, and it is millions of new members on board every year. It added 5.2 million new customers in the third quarter of 2024 alone and ended the quarter with 109.7 million.
The majority of its growth due to numbers still comes from Brazil, which has the largest population of every Latin -American country. Now 98.8 million customers in Brazil had from the end of the third quarter, or 56% of the adult population, and 60% of the active members now used their primary bank account.
Now his roots in aiming the massive consumer, who was largely locked up of the highly regulated banking system in Brazil, has since also attracted the attention of a prosperous customer base, which is attracted to now’s all -underslijn, easy to make – Minde use financial app.
It is growing rapidly in Mexico, where it added 1.2 million customers in the third quarter for a total of 8.9 million. It has just started in Colombia, where it only has 2 million customers. It recently launched with high savings accounts in both markets, where his activities wins the traction, but it has a long growth course.
In addition to adding members, it also generates growth of existing members via Upsells and Cross-Sells. It has expanded its platform with bank accounts, loan products, investment aids and more, and the average turnover per active user increases, rises from $ 10 to $ 11 a year in the third quarter.
Active members often use the platform, indicated by an activity percentage of 83.6%, an increase of 82.8% the year before.
Now grows with jumps and boundaries, and it has a huge market chance in vertical and horizontal layers. However, it is active in a region with economic volatility that causes risks. As a bank it is also about the challenges of economic cycles, and higher interest rates lead to higher standard values. The non-performing loans (NPL) have increased, although the results of the third quarter were in line with expectations.
Image source: now holdings.
It is also still quite young and without an extensive track record. That is typical for almost every fast -growing shares, and now would not work for the very risk -aging investor.
Now shares act in a forward annual p/e ratio of 16, which is a bargain for a growth share. It is a higher appreciation than that of a typical bank share, but it is just a bit higher than some of the largest American benches such as JPMorgan Chase, which acts on a p/e of approximately 14. Now is a hybrid, the typical fintech – Shares, the use of technology to improve the financial services sector. I see the bull case so much more attractive for now, and I would concentrate on the growth part of the company and call this a bargain.
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*Stock Advisor Return on February 3, 2025
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of the Motley Fool. Suzanne Frey, a director of Alphabet, is a member of the board of directors of the Motley Fool. JPMorgan Chase is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in Apple and now Holdings. De Motley Fool has positions and recommends Alphabet, Amazon, Apple and JPMorgan Chase. The Motley Fool now recommends holdings. The Motley Fool has a disclosure policy.
Is shares now a purchase? was originally published by the Motley Fool
