DLocal (DLO) Upgraded to Buy: What Does It Mean for the Stock?

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].