Philippine inflation is expected to ease slightly to 6.6% in June from 6.8% in May, but it still sits well above the Bangko Sentral ng Pilipinas target range of 2% to 4%. That keeps the spotlight on higher for longer interest rates, pressure from wages, electricity and food costs, and a more cautious policy stance. For investors looking at banking and financial services stocks, this mix of sticky inflation and restrictive policy can create both potential opportunities and risks. This article looks at 3 stocks from our screener that appear positively exposed to this latest inflation backdrop.

Sezzle (SEZL)

Overview: Sezzle is a Minneapolis based fintech company that lets shoppers split purchases into short term instalments at the checkout, either online or in store, through products like Pay in Four, Pay in Five and virtual cards, while also offering options to pay in full. It earns fees from providing this point of sale credit and related services across a growing suite of subscription offerings such as Sezzle Anywhere, Premium and Sezzle Up, as well as through partnerships with third party lenders for longer term loans.

Operations: Sezzle generates about US$480.9 million in revenue from lending to end customers, all currently coming from the United States market.

Market Cap: US$6.16b

Investors watching how higher inflation and tight policy shape credit demand may find Sezzle interesting because it sits where younger, credit hungry consumers meet short term instalment lending. The company combines high profitability metrics, such as a 30.8% net margin and 75.4% ROE, with rapid revenue and earnings forecasts. However, a very high P/E multiple and rich assumptions in analyst models suggest expectations already run hot. Rising credit losses, reliance on external funding instead of deposits and ongoing litigation introduce real risk if conditions worsen or growth slows. At the same time, recent partnerships such as Pagaya’s AI underwriting, expanded funding facilities and strong merchant uptake indicate there is more to this story than a simple “expensive BNPL stock” label might suggest.

Sezzle’s mix of a 30.8% net margin, 75.4% ROE and a stretched P/E raises a clear question: are expectations justified or already stretched, and what the analyst forecasts for Sezzle are quietly signaling about the next twist in this story analyst forecasts for Sezzle

Toast (TOST)

Overview: Toast is a Boston based software company that gives restaurants a single cloud platform to run ordering, payments, payroll, inventory and guest marketing across in person, online and delivery channels. Its tools span point of sale terminals, kitchen displays, AI assistants like Toast IQ, back office automation and payment processing, so restaurant owners can manage front and back of house from one system.

Operations: Toast generates about US$6.4b in revenue from data processing and related financial technology services to restaurant customers.

Market Cap: US$16.7b

Toast stands out for investors because it sits directly on top of restaurant spending, collecting software fees and payment processing revenue every time customers tap, swipe or order, while many restaurants are still upgrading from older systems to integrated cloud platforms with AI tools. At the same time, reliance on external funding, hardware cost pressures and intense competition from other payment and software providers mean execution needs to stay tight for optimism around Toast to hold up as conditions shift for consumer spending and inflation linked costs in hospitality.

Toast’s restaurant engine looks wired for scale, but the real story lies in how its payments flywheel, software attach, and hardware costs fit together in the analysis report for Toast that hints at what could surprise next.

DLocal (DLO)

Overview: DLocal is a Uruguay based fintech company that helps global merchants accept and send payments in emerging markets, linking international businesses to local cards, bank transfers, cash vouchers and other alternative payment methods across industries like e commerce, ride hailing, streaming and financial services.

Operations: DLocal generates about US$1.2b in revenue from payment processing, mainly by handling pay ins and pay outs for cross border and local transactions across its network of emerging market countries.

Market Cap: US$4.37b

DLocal may warrant a close look if you want exposure to emerging market payments without building local banking relationships country by country. The company combines a capital light model and a 34.7% ROE with reported earnings growth, while trading below some estimates of fair value. Recent index inclusion, a sizeable buyback and a new dividend indicate management’s view of its cash generation. At the same time, funding relies on external borrowing rather than deposits, profit margins have moved from 19.2% to 15.8%, and merchant or regulatory shocks could matter more here than for a diversified bank. For investors, the key consideration is whether the current pricing adequately reflects those risks.

DLocal’s capital light model, 34.7% ROE and emerging markets reach suggest the headline story might miss something important. The analyst forecasts for DLocal could be where a crucial risk reward twist really sits.

The three stocks covered here are a useful starting point, but they are only a slice of the full Banking and Financial Services idea, with our screener surfacing 20 more companies that carry equally compelling narratives around stability, lending exposure and interest rate sensitivity in the Banking and Financial Services screener. Use Simply Wall St to identify and analyze the exact catalysts that matter to you, from payout ratios and balance sheet strength to return on equity and earnings quality, so you can focus on the highest conviction opportunities that fit your approach.

Take Control of Your Investment Journey

If Sezzle or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Curious About Alternative Stock Paths?

Fresh stock ideas move fast as momentum builds, laggards are dropping and quiet winners stay under the radar for now. Scan these focused lists before the crowd and review them carefully.

• Target reliable cash generators and stress test your downside using a curated list of solid balance sheet and fundamentals (47 results) that filters for durable earnings, strong liquidity and resilient business models.
• Spot quiet compounding machines early by reviewing 18 high quality undiscovered gems that highlight overlooked quality, robust financials and businesses still flying under most radars.
• Review opportunities in the infrastructure backbone of AI momentum with 52 AI infrastructure stocks built to surface companies supporting the chips, data centers and networks behind this trend.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.