1 High-Growth Stock Down 50% to Buy Hand Over Fist
DLocal's stock is fairly valued at 16x next year's free cash flow, balancing growth potential with emerging market risks. The company is debt-free with $560 million in cash, reinforcing its strong financial position. DLocal's strategic expansion and robust transaction pipelines position it well for growth in emerging markets.
DLocal Limited (NASDAQ:DLO ) Q3 2024 Earnings Conference Call November 13, 2024 6:00 PM ET Corporate Participants Pedro Arnt - Chief Executive Officer Maria Oldham - SVP Corporate Development, IR & Strategic Finance Mark Ortiz - Chief Financial Officer Conference Call Participants Beatriz Abreu - Goldman Sachs Guilherme Grespan - JPMorgan James Friedman - Susquehanna International Group Neha Agarwala - HSBC John Coffey - Barclays Cassie Chan - Bank of America Operator Hello, and thank you for standing by. Welcome to the DLocal Third Quarter 2024 Results Conference Call.
DLocal (DLO) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.16 per share a year ago.
DLocal excels in emerging markets, but is a small player compared to giants like Block and PayPal. Despite its size, DLocal has strong executive alignment, with 48.45% insider ownership and co-founder involvement on the board. Gross margins have significantly declined from 65% to 41%, raising concerns, but revenue growth remains robust at 26-27% annually.
DLocal Limited operates a leading digital payment processing platform in many emerging markets, with rapid growth slowing somewhat in 2024. Shares have moved from extremely overvalued to undervalued territory, over the 3 years since its IPO, on a price slide of -80%. The company services major clients like Amazon, Microsoft, Google, Spotify, Nike, Uber, Booking.com, Shein, Temu, and many others, processing payments in 40+ local currencies.
This South American company is still profitable and growing fast.
DLocal Limited (NASDAQ:DLO ) Q2 2024 Earnings Conference Call August 14, 2024 5:00 PM ET Company Participants Pedro Arnt - Chief Executive Officer Maria Oldham - Senior Vice President of Corporate Development, Investor Relations & Strategic Finance Mark Ortiz - Chief Financial Officer Conference Call Participants Tito Labarta - Goldman Sachs Soomit Datta - New Street Research Guilherme Grespan - JPMorgan Carlos Gomez - HSBC Cassie Chan - Bank of America John Coffey - Barclays Jamie Friedman - Susquehanna International Group Matt Coad - Autonomous Research Operator Good day, and thank you for standing by. Welcome to the DLocal Second Quarter 2024 Results Conference Call.
DLocal (DLO) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.15 per share a year ago.
DLocal (DLO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
While the market has no shortage of speculative biotech and tech names vying for your attention, many of these high-flyers are unlikely to see much upside going forward as they rapidly dilute shareholders. Instead, I prefer to focus on fundamentally sound companies trading at bargain valuations that are well-positioned to benefit from shifting economic trends and potentially lower interest rates.
Investing in dirt cheap stocks under $10 has a lot of appeal. One of the benefits is that a low share price allows you to buy more shares with a smaller amount of money.