Exploring growth characteristics of DLOCAL LTD (NASDAQ:DLO).

In this article we will dive into DLOCAL LTD (NASDAQ:DLO) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DLOCAL LTD showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Looking into the canslim metrics of DLOCAL LTD

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), DLOCAL LTD highlights its ability to generate increasing profitability, showcasing a 50.0% growth.
• DLOCAL LTD has experienced 59.26% q2q revenue growth, indicating a significant sales increase.
• The 3-year EPS growth of DLOCAL LTD (86.79%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The Return on Equity (ROE) of DLOCAL LTD stands at 33.93%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• The Relative Strength (RS) of DLOCAL LTD has been consistently solid, with a current 94.04 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. DLOCAL LTD exhibits strong prospects for further price appreciation.
• DLOCAL LTD maintains a healthy Debt-to-Equity ratio of 0.01. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• With 41.76% of the total shares held by institutional investors, DLOCAL LTD showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

What is the technical picture of NASDAQ:DLO telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall DLO gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, DLO is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• DLO is one of the better performing stocks in the Financial Services industry, it outperforms 93% of 96 stocks in the same industry.
• DLO is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Looking at the yearly performance, DLO did better than 94% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• DLO is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so DLO is lagging the market slightly.

For an up to date full technical analysis you can check the technical report of DLO

How does the complete fundamental picture look for NASDAQ:DLO?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

DLO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 96 industry peers in the Financial Services industry. DLO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DLO shows excellent growth, but is valued quite expensive already. These ratings would make DLO suitable for growth investing!

For an up to date full fundamental analysis you can check the fundamental report of DLO

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.