Black Friday may be weeks away, but the annual shopping extravaganza is already generating unprecedented excitement online.
E-commerce giant Amazon.com has kicked off sales for the annual shopping festival while Sam's Club, which is owned by Walmart, has attractive deals for Black Friday that have already begun to surface online. This comes as more retail transactions shift online. An Adobe report suggests that e-commerce sales will increase 11% this year to $91.6 billion.
MercadoLibre (MELI) and eBay (EBAY) are two retail stocks that are likely to reward investors as Black Friday approaches -- and even beyond. They have performed well, and demand for their services has grown steadily. Shares of both companies fell during Wednesday's session.
These dark horses are positioned for outsized growth in the coming weeks.
Much like what Baidu has done in China, MercadoLibre applied a proven online business model and built a leading regional franchise, in this case, in Latin America.D
Think of MercadoLibre as the eBay of Latin America with a strong following even in the U.S. The company's remarkable recent financial performance proves this international growth stock is an attractive investment option for investors.
Like Amazon.com and Alibaba, MercadoLibre has continued to establish its ancillary payments and shipping services. This gives it a strong competitive advantage. MercadoLibre's equivalent to PayPal, MercadoPago, has seen huge growth in number of transactions.
MercadoLibre shares, which are 45% year to date, have been buoyed by solid earnings-revision activity, too. The up-to-date consensus among 14 polled investment analysts is to buy stock in MercadoLibre. The company is trading at an attractive five-year expected price/earnings-to-growth ratio of 2.17. That's better than Amazon (3.71) and Alibaba.