Latest news with #DLocal
Yahoo
3 days ago
- Business
- Yahoo
Fintech Tailwind and Cheap Valuation Make StoneCo a Buy Today
StoneCo Ltd. STNE, a leading provider of financial technology solutions in Brazil, stands to benefit significantly from the global fintech market's accelerating growth. As the market, valued at $340.10 billion in 2024, is projected to surpass $1.12 trillion by 2032 at a CAGR of 16.2% (Fortune Business Insights report), companies like StoneCo that offer digital payment processing and cloud-based financial services are poised for substantial growth. The increasing adoption of cloud computing, AI-driven fraud detection and mobile-first financial services aligns closely with StoneCo's business model. The surge in demand for real-time payments and secure digital transactions — trends especially prominent in emerging markets —further strengthens StoneCo's strategic positioning across Latin America's evolving digital economy. In the past three months, StoneCo shares have skyrocketed roughly 54.9%, outpacing the broader Internet–Software industry and the S&P 500 benchmark, which have improved by about 4.3% and 2.4%, respectively. During this time, StoneCo has also outpaced key fintech peers such as PagSeguro Digital PAGS and DLocal Limited DLO. While PagSeguro, known for its digital payment and financial services tailored to small and mid-sized businesses, gained 30.9%, cross-border payment platform DLocal advanced 18.2%. Image Source: Zacks Investment Research Repricing Power Accelerates Profitability: StoneCo's first-quarter 2025 results highlight the success of the strategic repricing initiatives, which helped drive gross profit by 19% year over year, well above its annual guidance of 14%. By adjusting prices across its client base in response to 2024's yield curve spike, the company not only protected margins but also enhanced earnings per share by 36%, doubling the 18% growth pace projected for the full year. Deposit Growth and Monetization of PIX Drive Financial Expansion: StoneCo continues to benefit from strong growth in its financial ecosystem. Client deposits rose 38% year over year to R$8.3 billion, with R$6.3 billion placed in time deposits under its cash sweep strategy, cutting funding costs and improving capital strength. Meanwhile, PIX transactions jumped 95% and are now monetized like debit payments. This helps offset declines in card usage, boosts deposit inflows, and supports future lending and efficiency. Based on short-term price targets offered by nine analysts, StoneCo is currently trading 11.6% below its average Zacks price target. Image Source: Zacks Investment Research STNE stock's Value Score of B suggests a discounted valuation at this moment. This is evident from the price/earnings ratio. StoneCo shares currently trade at 9.26X forward earnings, well off its five-year high of 87.87X and below its median of 21.13X. The stock is also trading significantly below the industry's price/earnings ratio of 37.60. The stock is also trading below DLocal's 16.4X forward earnings. PagSeguro Digital, meanwhile, trades at 6.96X. Image Source: Zacks Investment Research Given StoneCo's robust first-quarter performance, disciplined repricing strategy and monetization of PIX transactions, the company is quite clearly executing well on both growth and profitability fronts. Coupled with its discounted valuation relative to peers and historical averages, STNE stands out as an attractive opportunity. With a Zacks Rank #1 (Strong Buy), now may be an opportune time for investors to capitalize on StoneCo's momentum before the market fully prices in its upside potential. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report DLocal Limited (DLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Business
- Bloomberg
Uruguay's DLocal Agrees to Buy AZA Finance in Africa Push
DLocal Ltd. has reached an agreement to buy African payments provider AZA Finance, as the emerging markets payments firm looks to accelerate growth outside of its stronghold of Latin America. The transaction, which is subject to regulatory approval, was announced in a statement on Tuesday that confirmed an earlier Bloomberg News report. Financial terms weren't disclosed.
Yahoo
27-05-2025
- Business
- Yahoo
Citi Initiates Coverage of DLocal (DLO) with a Buy Rating
On Tuesday, Citi analyst Arnon Shirazi initiated coverage of DLocal Limited (NASDAQ:DLO) with a Buy rating and a $14.60 price target. This sentiment comes from DLocal's expanding payment volume and strategic position. Global competition remains concentrated in developed markets, and DLocal is a certain choice for merchants that are looking to expand into emerging markets. A modern payment processor with illuminated buttons in a busy financial district. DLocal recently reported strong Q1 2025 financial results on May 14. The company achieved record highs in revenue, which reached $217 million and was up 18% year-over-year, as well as in gross profit, which stood at $85 million and grew 35%. Notably, the company's Total Payment Volume/TPV surged by 53% year-over-year to $8.1 billion. It also grew 5% sequentially. However, local-to-local TPV declined 3% sequentially due to seasonality and partial loss of share with a large merchant in Mexico. Increased processing costs in South Africa and Nigeria also impacted gross profit margins. DLocal Limited (NASDAQ:DLO) operates a global payment processing platform. It offers a pay-in solution that allows businesses to get paid for their products and services through various payment methods. While we acknowledge the potential of DLO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DLO and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
06-05-2025
- Business
- Bloomberg
DLocal CEO Sees E-Commerce Firms Rushing Into Milei's Argentina
Merchants selling everything from electronics, consumer goods and streaming services are coming back to Argentina as President Javier Milei unwinds years of controls, according to the the top executive at payment services provider DLocal Ltd. The company, which focuses on firms offering goods largely from China, the US and Europe into emerging markets, is seeing renewed activity in crisis-prone Argentina adding to its overall business with an expectation for that to continue, Chief Executive Officer Pedro Arnt said in an interview.
