DLocal (DLO): A Bright Future Ahead
DLocal Ltd. (DLO), a leading fintech company specializing in cross-border payments and local payment methods, has recently been upgraded to a Zacks Rank #2 – Buy due to growing optimism about its earnings prospects. This upgrade comes as a result of several positive factors that are shaping up for DLocal.
Strong Financials
Robust Revenue Growth: DLocal’s revenue has been growing steadily, with a year-over-year increase of 136.6% in Q3 2021. This robust growth is expected to continue, with the company projecting revenue growth of 125%-135% for 2022.
Impressive Earnings Surprises: DLocal has consistently beaten earnings expectations. In the last four quarters, the company surpassed the consensus EPS estimate by an average of 11.4%. This trend is expected to continue, with the Zacks Consensus Estimate for 2022 EPS standing at $0.47, which represents a year-over-year growth of 105.3%.
Expansion into New Markets
Global Presence: DLocal is expanding its reach by entering new markets. In Q3 2021, the company announced its entry into the Indian market, which is a significant step towards establishing a strong presence in Asia. DLocal’s focus on expanding its network of local payment methods and partnerships is expected to drive growth in these new markets.
Strategic Partnerships
Strong Partnerships: DLocal has formed strategic partnerships with major players in the fintech industry, including PayPal and MercadoPago. These partnerships provide DLocal with access to a large customer base and increase its market presence. In addition, DLocal’s partnership with MercadoPago allows the company to offer its payment solutions to merchants on MercadoPago’s platform, further expanding its reach.
Impact on Individual Investors
Investment Opportunity: With its strong financials, expansion into new markets, and strategic partnerships, DLocal presents an attractive investment opportunity. The company’s upgraded Zacks Rank #2 (Buy) further reinforces this view. Investors looking for exposure to the growing fintech sector may consider adding DLocal to their portfolios.
Impact on the World
Financial Inclusion: DLocal’s focus on providing cross-border payment solutions using local payment methods is helping to bridge the gap in financial inclusion. The company’s services enable merchants to accept payments from customers in different countries using their preferred local payment methods. This not only makes it easier for merchants to expand their businesses globally but also provides consumers with greater access to financial services.
Digital Transformation: DLocal’s growth is a testament to the ongoing digital transformation in the payments industry. The shift towards digital payments is accelerating, and companies like DLocal that are at the forefront of this trend are well-positioned to benefit. The company’s upgraded Zacks Rank #2 (Buy) is a reflection of this trend and the growing optimism about DLocal’s earnings prospects.
Conclusion
A Bright Future: DLocal’s upgraded Zacks Rank #2 (Buy) is a strong indicator of the company’s promising future. Its robust financials, expansion into new markets, strategic partnerships, and focus on financial inclusion make it an attractive investment opportunity. Furthermore, its contribution to the digital transformation in the payments industry underscores its importance in the global economy. As investors and consumers continue to embrace digital payments, DLocal is poised to benefit significantly.
- DLocal (DLO) upgraded to a Zacks Rank #2 (Buy) due to growing optimism about its earnings prospects.
- Strong financials, expansion into new markets, and strategic partnerships are driving DLocal’s growth.
- Investors looking for exposure to the growing fintech sector may consider adding DLocal to their portfolios.
- DLocal’s focus on financial inclusion and digital transformation is helping to bridge the gap in financial services and accelerating the shift towards digital payments.
