Exploring NASDAQ:DLO's CANSLIM characteristics.

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

• DLOCAL LTD has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 50.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• 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.
• The Return on Equity(ROE) of DLOCAL LTD is 33.93%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• The Relative Strength (RS) of DLOCAL LTD has consistently been strong, with a current 80.4 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.
• DLOCAL LTD maintains a healthy Debt-to-Equity ratio of 0.01. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• With 42.08% of the total shares held by institutional investors, DLOCAL LTD showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Analyzing the Technical Aspects

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 5 out of 10 to DLO. DLO has been an average performer in the overall market. We also notice some doubts in the very recent evolution, but in the medium term things are still fine.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, DLO did better than 80% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• DLO is an average performer in the Financial Services industry, it outperforms 69% of 101 stocks in the same industry.
• DLO is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month DLO has a been trading in the 17.67 - 19.99 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of DLO

A complete fundamental analysis of NASDAQ:DLO

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

DLO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. DLO has an excellent financial health rating, but there are some minor concerns on its profitability. DLO is valued quite expensive, but it does show an excellent growth. These ratings could make DLO a good candidate for growth investing.

Our latest full fundamental report of DLO contains the most current fundamental analsysis.

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.