Core Viewpoint - The comparison between XP Inc. and SoFi Technologies indicates that XP presents a better value opportunity for investors at this time due to its stronger earnings outlook and more attractive valuation metrics [3][7]. Valuation Metrics - XP has a forward P/E ratio of 10.16, significantly lower than SoFi's forward P/E of 76.08, indicating that XP is undervalued relative to its earnings potential [5]. - The PEG ratio for XP is 0.76, while SoFi's PEG ratio is 3.00, suggesting that XP is expected to grow its earnings at a more favorable rate compared to its valuation [5]. - XP's P/B ratio stands at 2.61, compared to SoFi's P/B of 3.81, further supporting the notion that XP is a more attractive investment based on book value [6]. Investment Ratings - XP holds a Zacks Rank of 1 (Strong Buy), while SoFi has a Zacks Rank of 2 (Buy), indicating a stronger positive earnings estimate revision trend for XP [3][6]. - Based on the overall valuation metrics, XP has a Value grade of B, whereas SoFi has a Value grade of F, highlighting XP's superior valuation profile [6].

Company Overview - XP Inc.A is expected to report quarterly earnings of $0.43 per share, reflecting a year-over-year increase of +10.3% [3] - Revenues are anticipated to reach $834.73 million, which is a 3.1% increase from the previous year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 17.14% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for XP Inc.A is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.18% [12] Earnings Surprise Potential - A positive Earnings ESP reading suggests a strong likelihood of an earnings beat, especially when combined with a Zacks Rank of 1 [10] - XP Inc.A currently holds a Zacks Rank of 1, indicating a high probability of exceeding the consensus EPS estimate [12] Historical Performance - In the last reported quarter, XP Inc.A had an earnings surprise of +2.63%, posting earnings of $0.39 per share against an expectation of $0.38 [13] - Over the past four quarters, the company has beaten consensus EPS estimates only once [14] Industry Context - Another company in the Zacks Financial - Miscellaneous Services industry, HA Sustainable Infrastructure Capital, is expected to post earnings of $0.62 per share, reflecting a year-over-year decrease of -1.6% [18] - HA Sustainable Infrastructure Capital's revenues are projected to decline by 49% year-over-year, with an Earnings ESP of -1.86% and a Zacks Rank of 4 [19][20]

Group 1 - XP Inc. has experienced significant selling pressure, resulting in a 12.1% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The Relative Strength Index (RSI) for XP is currently at 25.59, indicating that the stock is in oversold territory, which may suggest a potential reversal in trend [5][7] - Over the last 30 days, the consensus EPS estimate for XP has increased by 11.3%, indicating a positive trend in earnings estimates that typically correlates with price appreciation [7][8] Group 2 - XP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Core Insights - Investors in the Financial - Miscellaneous Services sector may consider XP Inc.A (XP) and SoFi Technologies, Inc. (SOFI) as potential undervalued stocks [1] - A strong Zacks Rank combined with a favorable Value grade is an effective method for identifying value opportunities [2] Company Comparison - XP Inc.A has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to SoFi Technologies, Inc., which has a Zacks Rank of 3 (Hold) [3] - Value investors typically analyze traditional metrics to identify undervalued stocks [3] Valuation Metrics - XP has a forward P/E ratio of 10.85, significantly lower than SOFI's forward P/E of 75.90 [5] - XP's PEG ratio is 0.81, while SOFI's PEG ratio is 3.53, indicating XP's better valuation relative to its expected earnings growth [5] - XP's P/B ratio is 2.78, compared to SOFI's P/B of 3.47, further supporting XP's superior valuation [6] - Based on these metrics, XP holds a Value grade of B, while SOFI has a Value grade of F, suggesting XP is the better value option [6]

Core Viewpoint - The rating for XP Inc. (NASDAQ: XP) shares has been upgraded from hold to buy following the release of its Q1 2025 results [1] Company Summary - XP Inc. has been under coverage for over five years, focusing on equity analysis in Latin America [1] Investment Insights - The article aims to provide clients with in-depth research and insights to facilitate informed investment decisions [1]

Group 1: Earnings Performance - XP Inc.A reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and up from $0.37 per share a year ago, representing an earnings surprise of 2.63% [1] - The company posted revenues of $740.99 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.55%, and down from $818.21 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - XP Inc.A shares have increased approximately 57.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.39 on revenues of $803.44 million, and for the current fiscal year, it is $1.60 on revenues of $3.25 billion [7] Group 3: Industry Context - The Zacks Industry Rank for Financial - Miscellaneous Services, to which XP Inc.A belongs, is currently in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Group 1 - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of XP Inc. due to allegations of misleading business information [1] - Investors who purchased XP securities may be entitled to compensation through a class action without any out-of-pocket fees [2] - A report by Grizzly Research accused XP of operating a Ponzi scheme, leading to a 5.4% drop in XP's stock on March 12, 2025 [3] Group 2 - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions [4] - The firm has achieved significant settlements for investors, including over $438 million in 2019 and has been consistently ranked among the top firms in securities class action settlements [4]

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving XP Inc. and its officers or directors [1] Group 1: Investigation and Allegations - Pomerantz LLP is representing investors of XP Inc. in an investigation regarding possible securities fraud [1] - Grizzly Research published a report alleging that XP is operating a Ponzi scheme through derivatives sales misrepresented as proprietary trading profits [3] - Following the report's release, XP's stock price dropped by $0.82, or 5.48%, closing at $14.14 per share on March 12, 2025 [3] Group 2: Company Background - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of over 85 years in fighting for victims of securities fraud [4] - The firm has successfully recovered numerous multimillion-dollar damages awards for class members [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights XP (XP) as a strong candidate for value investors due to its favorable valuation metrics and strong earnings outlook [2][8]. Valuation Metrics - XP has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is highly regarded in the market [4]. - The stock's P/E ratio is 9.22, significantly lower than the industry average of 15.41, suggesting it may be undervalued [4]. - XP's PEG ratio stands at 0.65, compared to the industry average of 0.97, indicating a favorable valuation when considering expected earnings growth [5]. - The P/B ratio for XP is 2.30, which is lower than the industry average of 3.19, further supporting the notion of undervaluation [6]. - XP's P/CF ratio is 9.44, well below the industry average of 14.76, highlighting its attractive cash flow position [7]. Historical Performance - Over the past 52 weeks, XP's Forward P/E has fluctuated between 1.97 and 12.21, with a median of 9.50, indicating volatility but also potential for growth [4]. - The PEG ratio for XP has ranged from 0.16 to 0.85, with a median of 0.71, reflecting its earnings growth potential [5]. - The P/B ratio has varied between 1.63 and 2.99, with a median of 2.40, showing stability in its book value relative to market value [6]. - The P/CF ratio has seen a range from 6.71 to 14.03, with a median of 10.36, indicating a solid cash flow outlook [7]. Investment Outlook - Given the combination of XP's low valuation metrics and strong earnings outlook, it is positioned as a compelling value stock for investors [8].

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving XP Inc. and its officers or directors [1] Group 1: Investigation and Allegations - Pomerantz LLP is representing investors of XP Inc. in an investigation regarding possible securities fraud [1] - Grizzly Research published a report alleging that XP is operating a Ponzi scheme through derivatives sales misrepresented as proprietary trading profits [3] - Following the report's release, XP's stock price decreased by $0.82, or 5.48%, closing at $14.14 per share on March 12, 2025 [3] Group 2: Company Background - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of recovering significant damages for victims of securities fraud [4]