Core Insights - The article discusses the perspective of a Latin-American fundamentalist investor focused on identifying discounted stocks both regionally and globally [1] Group 1: Investor Profile - The investor has a background as a Portfolio Manager at a large financial institution and experience in investment banking and economic journalism [1] - The investor specializes in sectors such as technology, retail, and banking [1] - The investor holds an Economic BS and an MBA, emphasizing a strong educational foundation [1] Group 2: Investment Strategy - The investor employs a bottom-up analysis approach to find value in stocks [1] - The investor also considers macro-driven situations that may affect investment opportunities [1]

Group 1 - DLocal Limited (NASDAQ: DLO) is recognized as Uruguay's first "unicorn" fintech company, founded in 2016, and has established itself as a significant player in the global payments sector [1] - The company's core mission is to bridge the payment innovation gap between global merchants, indicating a focus on enhancing payment solutions for international commerce [1] - Daniel Sereda, a chief investment analyst, emphasizes the importance of filtering vast amounts of data to extract critical investment ideas, showcasing the analytical rigor applied in evaluating companies like DLocal [1]

Core Insights - The article compares two financial transaction services companies, PagSeguro Digital Ltd. (PAGS) and DLocal (DLO), to determine which is the better undervalued stock option for investors [1] Valuation Metrics - PAGS has a forward P/E ratio of 7.65, significantly lower than DLO's forward P/E of 17.66, indicating that PAGS may be undervalued [5] - The PEG ratio for PAGS is 0.68, while DLO's PEG ratio is 1.05, suggesting that PAGS has a better growth outlook relative to its price [5] - PAGS has a P/B ratio of 1.25 compared to DLO's P/B of 5.75, further indicating that PAGS is more attractively valued based on its book value [6] Investment Ratings - PAGS currently holds a Zacks Rank of 2 (Buy), while DLO has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for PAGS [3] - Based on the valuation metrics and earnings outlook, PAGS is rated with a Value grade of A, whereas DLO has a Value grade of C, reinforcing PAGS as the superior value option [6]

Company Overview - DLocal shares increased by 8.8% to $11.16, following a significant trading volume, contrasting with an 8.9% decline over the past four weeks [1] - The company has experienced a rally for three consecutive days, attributed to its unified platform that facilitates payments for global merchants in over 40 emerging markets [2] Business Model and Market Position - DLocal's strong local presence, including regulatory licenses and partnerships with payment providers, enables seamless compliance and settlement in local currencies [2] - The company benefits from partnerships with top global merchants, leading to high transaction volumes and a strong Net Revenue Retention rate through upselling and cross-border expansion [3] - DLocal's asset-light model and operational efficiency contribute to high margins and profitability, while proprietary technology and market knowledge create barriers to entry for competitors [3] Financial Performance and Expectations - The upcoming quarterly earnings report is expected to show earnings of $0.15 per share, unchanged from the previous year, with revenues projected at $231.04 million, reflecting a 34.9% increase year-over-year [4] - The consensus EPS estimate has been revised 1.2% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5] Industry Context - DLocal is categorized within the Zacks Financial Transaction Services industry, which includes other companies like Nayax, that also experienced a stock increase of 5.5% recently [6]

Core Viewpoint - dLocal Limited has appointed Will Pruett as an Independent Board Member and member of the Audit Committee, effective July 1, 2025, to enhance the Board's guidance on growth and scalability [1][2][3] Group 1: Appointment Details - Will Pruett brings extensive expertise in capital markets and emerging markets, which will be crucial for dLocal's expansion and stakeholder value delivery [2][3] - Pruett has a notable background, including 16 years at Fidelity Investments managing various funds focused on Latin America and emerging markets, and prior experience at HSBC [2] - His appointment reflects dLocal's commitment to effective governance and diverse perspectives in driving growth strategies [3] Group 2: Board Changes - Mariam Toulan's term as Independent Director will conclude on June 30, 2025, and the company expresses gratitude for her contributions during her tenure [4] Group 3: Company Overview - dLocal operates a technology-first payments platform that connects global enterprise merchants with consumers in over 40 emerging market countries across Africa, Asia, and Latin America [5] - The "One dLocal" platform allows global companies to manage payments, pay-outs, and fund settlements without the complexity of multiple local entities and payment processors [5]

Core Viewpoint - dLocal is positioned as a crucial payment processing company that connects global e-commerce giants with consumers in emerging markets, adapting to local payment methods and regulatory changes [1]. Company Overview - dLocal operates as a payment processing company, facilitating transactions between international e-commerce platforms and consumers in emerging markets [1]. Market Position - The company serves as a "toll bridge," indicating its role in enabling cross-border payments in regions where payment methods are diverse and regulations are frequently updated [1].

Core Viewpoint - DLocal (DLO) shows a promising earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about DLocal's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, DLocal is projected to earn $0.15 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 16% over the last 30 days, with no negative revisions [6]. - For the full year, the expected earnings per share is $0.62, representing a year-over-year increase of 21.57%, with three estimates moving higher recently and no negative revisions [7]. Zacks Rank - DLocal currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [8]. Stock Performance - DLocal's stock has gained 13.9% over the past four weeks, driven by solid estimate revisions, suggesting that its earnings growth prospects may lead to further stock price increases [9].

Core Viewpoint - DLocal (DLO) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for DLocal's earnings per share (EPS) for the fiscal year ending December 2025 is projected at $0.62, reflecting a 21.6% increase from the previous year [8]. - Over the past three months, the consensus estimate for DLocal has risen by 9.9%, indicating a trend of increasing earnings estimates [8]. Zacks Rating System - The Zacks rating system classifies stocks based on earnings estimate revisions, with DLocal's upgrade positioning it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns [10]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Impact of Institutional Investors - Changes in earnings estimates significantly influence institutional investors' valuation models, leading to buying or selling actions that affect stock prices [4]. - The correlation between earnings estimate revisions and stock price movements underscores the importance of tracking these revisions for investment decisions [6].

Group 1: dLocal Ltd (NASDAQ:DLO) - dLocal Ltd is currently one of the best-performing stocks on Wall Street, with a recent increase of 13.4% to a trading price of $11.59 [1] - The company's first-quarter earnings and revenue exceeded estimates, leading to a price-target increase from Susquehanna from $16 to $18 [1] - dLocal has reclaimed its year-to-date breakeven level and is up 17% over the last 12 months [1] Group 2: LendingClub Corp (NYSE:LC) - LendingClub Corp is down 4% to a trading price of $10.66 and has seen a decline of 34% year-to-date [1] - Despite a nearly 10% increase in May, the stock's rally has been halted at its 80-day moving average [1] Group 3: Robinhood Markets Inc (NASDAQ:HOOD) - Robinhood Markets Inc is down 2.8% to a trading price of $59.68, having recently attempted to reach its four-year high of $66.91 [2] - The stock has achieved a 60% gain year-to-date, with support at its 200-day moving average [2] Group 4: Affirm Holdings Inc (NASDAQ:AFRM) - Affirm Holdings Inc is down 6.8% to a trading price of $52.68 and has declined 13% year-to-date [3] - The stock faced resistance at its 126-day moving average but remains up 63% over the last 12 months [3] Group 5: Market Sentiment and Short Selling - dLocal Ltd shows significant contrarian potential, with five out of seven brokerages covering the stock maintaining "hold" ratings [3] - Nearly 15% of dLocal's total available float is sold short, indicating potential for upward movement [3]

Core Insights - The article emphasizes the investment philosophy focused on identifying mispriced securities through understanding the financial drivers of companies, often revealed by a DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]