It was hard to find any stock that was up for the day Monday. But top-ranked fintech play MercadoLibre not only rose, it topped a cup-with-handle buy point.
MercadoLibre stock closed roughly unchanged Monday afternoon after rising as much as 1.4% in early trading. Additionally, the Relative Strength (RS) Rating for MercadoLibre shot up 22 points to 84, up from 62 at the end of last week.
MercadoLibre Stock Pops On Top-Notch Fundamentals
As reported earlier, "Last week, the Latin American e-commerce and payments giant blew past second-quarter estimates, with net profit more than doubling from the year-earlier period."
The upgraded 84 RS Rating shows that MercadoLibre stock is among the top 16% overall. Market research shows that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves.
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International e-Commerce giant MercadoLibre originated in Argentina, is based in Uruguay and incorporated in Delaware. Among its other ratings it carries a terrific 97 Composite Rating out of 99, and a best-possible 99 Earnings Per Share Rating.
Its B Accumulation/Distribution Rating on an A+ to E scale shows that institutional investors like ETFs are fairly heavy buyers of MercadoLibre stock. Additionally, the number of funds holding its shares rose from 2,690 in September to 3,010 in June.
Tops Buy Point In Twice Usual Volume
MercadoLibre, sometimes called the Amazon.com of Latin America, posted a 103% increase in EPS last quarter to a hefty $10.48 on a 42% rise in revenue to $5.07 billion. Its earnings growth has been a bit erratic but strong overall. The prior three quarters its EPS grew 180%, 0% and 71%.
The IBD 50 stock on Monday topped a cup with handle with a 1,792.05 buy point in twice its usual volume.
MercadoLibre stock holds the No. 1 rank among its peers in the Retail-Internet industry group. PDD Holdings and eBay are also among the group's highest-rated stocks.
IBD's unique RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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