One important metric to look for in a stock is an 80 or higher Relative Strength Rating. MercadoLibre just hit that mark, with a jump from 77 to 88 Monday.
IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against that of all other stocks.
History shows that the market's biggest winners typically have an 80 or higher RS Rating in the early stages of their moves.
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The IBD 50 stock is now considered extended and out of buy range after clearing a 2,146.81 buy point in a second-stage double bottom. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 288%, compared to 9% in the prior report. Revenue increased from 35% to 37%.
MercadoLibre holds the No. 1 rank among its peers in the Retail-Internet industry group. Liquidity Services and MercadoLibre are also among the group's highest-rated stocks.
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