DLO Should I Buy
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DLocal Ltd (DLO) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company shows strong financial growth trends in revenue, net income, and EPS, the technical indicators are bearish, and there is no immediate positive catalyst or trading signal to suggest an optimal entry point. The options data reflects a bullish sentiment, but the stock's recent price performance and lack of significant news or insider activity make it prudent to hold off on buying for now.
The stock is in a bearish trend with MACD below zero and negatively expanding, RSI at 35.45 in the neutral zone, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support is at 11.792, and resistance is at 13.225. The stock is trading close to its support level, but no clear reversal signals are present.
Strong financial performance in Q3 2025 with revenue up 52.06% YoY, net income up 93.51% YoY, and EPS up 88.89% YoY. Analysts maintain optimistic ratings with price targets above the current price.
Bearish technical indicators, recent price decline (-2.88% in regular market trading), and no recent news or significant insider/hedge fund activity. Gross margin dropped by -13.19% YoY, indicating potential cost pressures.
In Q3 2025, revenue increased to $282.48M (+52.06% YoY), net income rose to $51.83M (+93.51% YoY), and EPS increased to $0.17 (+88.89% YoY). However, gross margin declined to 36.53% (-13.19% YoY), which could signal rising costs or pricing pressures.
Analysts are optimistic with recent ratings including JPMorgan's Overweight rating and a price target of $18, and Truist's Buy rating with a price target of $17. However, there is caution about tougher year-over-year comparisons and potential guidance resets for 2026.
