From Yahoo Finance: 2025-04-18 15:16:00

In a volatile market dominated by mega-cap tech stocks and tariffs, savvy investors turn to under-the-radar stocks for growth potential. Amid market fluctuations, the need to look beyond traditional investments arises, highlighting opportunities in lesser-known equities. Institutional concentration in large caps sparks interest in emerging companies with future market leadership traits. The Federal Reserve’s interest rate cuts create a favorable backdrop for identifying emerging stocks poised for growth.

In pursuit of under-the-radar stocks with strong fundamentals, a screening methodology identifies 10 stocks with growth potential and past outperformer attributes. Criteria include market cap under $10 billion, positive EPS growth, limited institutional ownership, P/E ratio under 20, and debt-to-equity ratio under 1. These stocks demonstrate long-term shareholder value creation potential.

DLocal Limited (NASDAQ:DLO), a payment processor connecting global merchants to emerging market consumers, saw a 45% year-over-year increase in total payment volume in 2024. While facing challenges in certain markets, the company’s expansion and technology development efforts position it for growth. With institutional ownership at 12.62% and interest from 19 hedge funds, DLO presents a promising under-the-radar investment opportunity.

Ranked 5th on the list of best under-the-radar stocks, DLocal Limited (DLO) offers growth potential but AI stocks are seen as more promising for higher returns in a shorter timeframe. With low visibility and potential for growth, DLO stands out as a quiet pick for investors. For those seeking AI stocks with promising returns, explore the report on the cheapest AI stock trading at less than 5 times its earnings.

Read more: Is DLocal Limited (DLO) the Best Under-the-Radar Stock to Buy Now?