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Delving into NASDAQ:DLO's Growth Prospects.

By Mill Chart

Last update: Oct 3, 2023

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DLOCAL LTD (NASDAQ:DLO) is suited for growth investing. Investors should of course do their own research, but we spotted DLOCAL LTD showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NASDAQ:DLO highlighted

  • 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 demonstrated strong q2q revenue growth of 59.26%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
  • Over the past 3 years, DLOCAL LTD has demonstrated 86.79% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
  • DLOCAL LTD has achieved an impressive Return on Equity (ROE) of 33.93%, showcasing its ability to generate favorable returns for shareholders.
  • The Relative Strength (RS) of DLOCAL LTD has consistently been strong, with a current 92.21 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. DLOCAL LTD demonstrates promising potential for sustained price momentum.
  • Maintaining a Debt-to-Equity ratio of 0.01, DLOCAL LTD demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
  • DLOCAL LTD exhibits a favorable ownership structure, with an institutional shareholder ownership of 42.09%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

In-Depth Technical Analysis of NASDAQ:DLO

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall DLO gets a technical rating of 6 out of 10. In the last year, DLO was a medium performer in the overall market. The medium term is still looking fine, but we see some doubts in the very recent evolution.

  • The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
  • DLO is one of the better performing stocks in the Financial Services industry, it outperforms 86% of 100 stocks in the same industry.
  • Looking at the yearly performance, DLO did better than 92% 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

A complete fundamental analysis of NASDAQ:DLO

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily 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 100 industry peers in the Financial Services industry. DLO has an excellent financial health rating, but there are some minor concerns on its profitability. DLO shows excellent growth, but is valued quite expensive already. These ratings would make DLO suitable for growth investing!

Check the latest full fundamental report of DLO for a complete fundamental analysis.

Our CANSLIM screen will find you more ideas suited for growth investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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