DLocal (DLO) Moves 12.9% Higher: Will This Strength Last?

DLocal (DLO) shares soared 12.9% in the last trading session to close at $14.67. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.8% gain over the past four weeks.DLocal retained its rally for the sixth straight day, driven by strength in its fully cloud-based proprietary platform, which enables merchants to access multiple emerging markets through a single API and one contract. This unified architecture simplifies cross-border and local-to-local payments, improves payment conversion through intelligent routing, automatic retries, and AI-driven optimization, while reducing integration complexity and enhancing scalability, transparency, compliance, and user experience.The company further differentiates itself through continuous technology innovation and a deeply integrated payments ecosystem. Its platform combines payment processing, foreign exchange, compliance, tax, fraud prevention, reporting, and reconciliation into a single solution. Recently, DLocal received a rating upgrade from Neutral to Buy by a UBS analyst. This online payment company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +42.9%. Revenues are expected to be $359.84 million, up 40.3% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For DLocal, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DLO going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>DLocal is part of the Zacks Financial Transaction Services industry. Euronet Worldwide (EEFT), another stock in the same industry, closed the last trading session 2.8% higher at $75.22. EEFT has returned 2.1% in the past month.Euronet Worldwide's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3. Compared to the company's year-ago EPS, this represents a change of +17.2%. Euronet Worldwide currently boasts a Zacks Rank of #3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks