Stock Markets September 15, 2026 10:32 AM

Two Midcap Stories: DLocal’s Emerging-Market Payments Growth and Palomar’s Insurance Niche

Both companies clear profitability and revenue-growth screens, but one carries greater market volatility while the other offers more pricing discipline

By Leila Farooq
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DLO PLMR

Two midcap names meet a set of quantitative screens that include $2 billion to $10 billion market capitalizations, revenue growth above 10%, return on invested capital above 10%, and positive six-month returns. DLocal and Palomar each show robust top-line expansion and strong ROIC, though their business risks differ: one is exposed to emerging-market payments dynamics, the other to underwriting and claims cycles in specialty insurance.

Two Midcap Stories: DLocal’s Emerging-Market Payments Growth and Palomar’s Insurance Niche
DLO PLMR
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Key Points

  • Both DLocal and Palomar passed a quantitative screen requiring $2B to $10B market caps, revenue growth above 10%, ROIC above 10%, and positive six-month returns - impacting the fintech and insurance sectors.
  • DLocal reported revenue growth from $650.35M in 2023 to $1.09B in 2025, levered FCF of $427.30M as of Jun 30, 2026, and a Fair Value Upside of 41.4% as of Sep 15, 2026, 10:28 AM EDT - relevant to payments and emerging-market exposure.
  • Palomar’s revenue rose from $375.93M in 2023 to $875.97M in 2025, with 32% gross-written-premium growth and 26% adjusted ROE cited for 2025; Fair Value Upside was 23.2% as of Sep 15, 2026, 10:28 AM EDT - relevant to specialty insurance and surety expansion.

Two midcap companies receiving attention after a quantitative screen are DLocal Ltd and Palomar Holdings Inc. Both passed filters for market capitalization, revenue growth, return on invested capital and recent positive returns. The screener values are presented as snapshots and may lag live prices.


DLocal Ltd (DLO)

As of Sep 15, 10:28 AM EDT, DLocal was trading at $14.64 with a market capitalization of $4.30 billion. The company reported revenue growth of 57.0% as of Jun 30, 2026, and an ROIC of 36.2%. The same snapshot shows a Fair Value Upside of 41.4% as of Sep 15, 2026, 10:28 AM EDT.

Revenue expanded from $650.35 million in 2023 to $1.09 billion in 2025. Levered free cash flow reached $427.30 million as of Jun 30, 2026. Supporters point to geographic diversification and continued payment-volume growth as the basis for further upside. Detractors highlight the risk of take-rate compression, higher operating costs and currency volatility as potential headwinds. The company was part of conference coverage on Sep 10, 2026.


Palomar Holdings Inc (PLMR)

Palomar traded at $136.29 as of Sep 15, 10:28 AM EDT, with a market capitalization of $3.60 billion. The firm registered revenue growth of 60.0% as of Jun 30, 2026 and an ROIC of 19.9%. The snapshot Fair Value Upside was 23.2% as of Sep 15, 2026, 10:28 AM EDT.

Revenue rose from $375.93 million in 2023 to $875.97 million in 2025. Management noted in the 2025 earnings call 32% gross-written-premium growth and a 26% adjusted return on equity. The stock is seen by advocates as benefiting from disciplined specialty underwriting and expansion into surety lines. The principal downside scenarios cited are catastrophe losses, rising expense ratios and slower pricing in property lines. The company was included in Q4 earnings coverage on Feb 12, 2026.


Short-term market moves and context

Market snapshots included small intraday moves noted alongside the profiles: PLMR -0.48% and DLO -2.09%. The data underpinning the screen and historical records are presented as point-in-time values. Historical data availability is limited to 10 years on the referenced Pro+ plan.


Comparative view

DLocal offers a larger potential percentage upside in the provided fair-value snapshots but operates in emerging markets where currency swings and take-rate sensitivity can amplify volatility. Palomar presents a steadier picture based on underwriting discipline and diversification into surety, while remaining exposed to the cyclical nature of insurance claims and catastrophe risk. Both names meet the numerical filters of the screen: midcap size, double-digit revenue growth, ROIC above 10% and positive six-month returns.


Conclusion

Investors weighing these midcap opportunities should consider their tolerance for emerging-market payment volatility versus underwriting and claims variability in insurance. The quantitative screen highlights both companies for further fundamental review, but the snapshot nature of the data means live-price verification is advisable.

Risks

  • DLocal is exposed to take-rate pressure, operating-cost inflation and currency volatility, which could affect payments revenue and margins - impacting fintech and emerging-market economic sensitivity.
  • Palomar faces risks from catastrophe losses, rising expense ratios and slower pricing in property lines, which could rapidly change underwriting profitability - impacting insurance sector performance.

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