What happened

XP (XP -0.44%) saw its stock price increase significantly on Wednesday, surging as high as 15.3% shortly after the opening bell. By 12 p.m. ET, the financial stock was up about 9.5% to around $20.10 per share.

The move was in stark contrast to the major indexes as the Dow Jones Industrial Average, S&P 500, and Nasdaq were down -0.8%, -0.8%, and -1%, respectively, on Wednesday morning.

So what

XP did not correlate to the down stock market for a few reasons. One, it is a Brazilian investment management company, so it did not feel the impact that its U.S.-based counterparts did from the uncertain and still up-in-the-air U.S. elections.

But the bigger catalyst was the firm's third-quarter earnings report released Wednesday morning, which topped analysts' projections.

Net revenue jumped 14% year over year to 3.6 billion reals, while gross profit was up 15%. Further, earnings per share, in Brazilian real currency, was up 11% year over year to R$1.85 per share -- or $0.35 per share in U.S. dollars.

Revenue was boosted by a 105% increase from institutional clients. While retail customers are by far the largest revenue source, up 2% year over year this quarter, the institutional gains, mainly from fixed income products, were the primary driver in the quarter.

Now what

Brazil had its own presidential election on Oct. 30 and the left-wing candidate, Luiz Inácio Lula da Silva, won, defeating the incumbent Jair Bolsonaro.

There had been some question as to what that would mean for the economy, but many felt that the stable Brazilian economy would persist in 2023 no matter who took office. On Wednesday, Brazilʻs Economy Ministry set GDP growth for 2023 in a range of 1.4% to 2.9%. This year, the economy is expected to finish with a 2.7% growth in GDP.

XP has grown rapidly over the past few years and sees itself as a disruptor in the market, offering low-cost financial products and services through its technology-enabled investment platform to unserved or underserved populations. So there is a huge growth opportunity in this market.

XP only went public in December of 2019 and is still in growth mode, but it might be one to put on your radar.