4-Star Stocks Poised to Pop: MercadoLibre

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American online auction operator MercadoLibre (NAS: MELI) has earned a respected four-star ranking.

With that in mind, let's take a closer look at MercadoLibre's business and see what CAPS investors are saying about the stock right now.

MercadoLibre facts

Headquarters (founded)

Buenos Aires, Argentina (1999)

Market Cap

$3.7 billion


Internet software and services

Trailing-12-Month Revenue

$340.7 million


Co-Founder/Chairman/CEO Marcos Galperin
CFO Pedro Arnt

Return on Equity (average, past 3 years)



$170.6 million / $240.7 thousand

Dividend Yield




Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 1,121 members who have rated MercadoLibre believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, mario17, tapped the stock as a timely bargain opportunity:

MercadoLibre has been down since the beginning of the year, mainly because of uncertainty in the world economy, a miss in first quarter profit and a slower economic growth for Brazil, which represents a huge part of its current market. Although all this justify why the recent downside in the stock price, the company still has lots of space for growth in the long term, driven by the growing middle class of Latin America who are getting online. That's why although we can expect volatility in the short run because of economic uncertainty, uncertainty creates buying opportunities, and at today's price I think [MercadoLibre] is set to outperform the S&P 500 in the long term.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, MercadoLibre may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 4-Star Stocks Poised to Pop: MercadoLibre originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of MercadoLibre and Amazon. Motley Fool newsletter services have recommended buying shares of MercadoLibre, Amazon, and eBay. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.