Why MercadoLibre Is Ready to Rebound

Updated

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

With that in mind, let's take a closer look at MercadoLibre, 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

Industry

Internet software

Trailing-12-Month Revenue

$356.3 million

Management

Co-Founder/Chairman/CEO Marcos Galperin

CFO Pedro Arnt

Return on Equity (average, past 3 years)

38.4%

Cash/Debt

$177.6 million / $199.7 thousand

Dividend Yield

0.5%

Competitors

Amazon.com

eBay


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

On CAPS, 94% of the 1,160 members who have rated MercadoLibre believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, wealthwiser, touched on the tailwinds working in MercadoLibre's favor:

Key player in online shopping in fast growing [Latin American] market. eBay of [Latin America], with eBay owning [18%] . Countries like [B]razil have a large population with a fast growing middle class and relatively low Internet penetration. So lots of room for growth.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, MercadoLibre may not be your top choice.

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The article Why MercadoLibre Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, eBay, and MercadoLibre. The Motley Fool owns shares of Amazon.com, eBay, and MercadoLibre. 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 Motley Fool has a disclosure policy.

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