DLocal (DLO) shares are in focus after the company reported first quarter 2026 results, with sales of US$335.86 million and net income of US$41.98 million, along with lower earnings per share year over year.

At a share price of US$12.66, DLocal has seen a 1-day share price return of 4.03%, while the year-to-date share price return has declined 10.02%. However, the 1-year total shareholder return is 17.98%, suggesting recent momentum has cooled after stronger gains over the past year.

If mixed earnings have you reassessing payments exposure, it can help to widen the lens and look at other fintech and infrastructure plays via the 39 AI infrastructure stocks

So with revenues growing but earnings per share lower than last year and the stock still trading below some valuation estimates, is DLocal quietly offering value here, or is the market already pricing in its future growth?

Most Popular Narrative: 43.7% Undervalued

Against the last close at $12.66, the most followed narrative pegs DLocal's fair value at $22.49, framing the stock as heavily discounted.

The trading narrative for dLocal (DLO), based on the DCF Valuation by HatedMoats, is that the stock is significantly undervalued. Key Trading Narrative Points:

• Verdict: Undervalued.

According to cracken25, the gap between fair value and price rests on a specific growth path for revenue, margins and future free cash flow. Curious which earnings and valuation assumptions underpin that verdict, and how they translate into that $22.49 figure.

Result: Fair Value of $22.49 (UNDERVALUED)

However, this depends on assumptions that could easily be challenged, especially if take-rate pressure reduces margins or regulatory changes affect key markets such as Brazil or Mexico.

Next Steps

If the mix of optimism and caution in this narrative feels familiar, this is the moment to move quickly, test the numbers yourself, and see how the 4 key rewards

Looking for more investment ideas?

If DLocal's story has you thinking about what else might be worth your attention, this is a good moment to broaden your watchlist with focused stock ideas.

• Target resilient income by reviewing companies in the 13 dividend fortresses that may appeal if you want yield with a clearer support from underlying businesses.
• Spot potential value by scanning the screener containing 22 high quality undiscovered gems and see which lesser-known stocks match the quality metrics you care about.
• Prioritise capital preservation by checking the 67 resilient stocks with low risk scores so you are not missing opportunities that align with a more cautious risk profile.

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.