High growth, ROE and relative strength for NASDAQ:DLO, growth investors may appreciate this.

In this article we will dive into DLOCAL LTD (NASDAQ:DLO) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DLOCAL LTD showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Some of the canslim metrics of NASDAQ:DLO highlighted

• In the most recent financial report, DLOCAL LTD reported a 50.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• DLOCAL LTD has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 59.26%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• DLOCAL LTD has achieved 86.79% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• In terms of Return on Equity(ROE), DLOCAL LTD is performing well, achieving a 33.93% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• DLOCAL LTD has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 91.47 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. DLOCAL LTD is well-positioned for potential price growth opportunities.
• DLOCAL LTD exhibits a favorable Debt-to-Equity ratio at 0.01. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• DLOCAL LTD exhibits a favorable ownership structure, with an institutional shareholder ownership of 42.46%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

Insights from Technical Analysis

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall DLO gets a technical rating of 6 out of 10. In the last year, DLO was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, DLO did better than 91% of all other stocks.
• DLO is one of the better performing stocks in the Financial Services industry, it outperforms 85% of 100 stocks in the same industry.
• In the last month DLO has a been trading in the 16.47 - 19.22 range, which is quite wide. It is currently trading near the high of this range.
• DLO is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so DLO is lagging the market slightly.

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

What is the full fundamental picture of NASDAQ:DLO telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall DLO gets a fundamental rating of 6 out of 10. We evaluated DLO against 100 industry peers in the Financial Services industry. DLO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DLO shows excellent growth, but is valued quite expensive already. With these ratings, DLO could be worth investigating further 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.

Keep in mind

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.