Why MercadoLibre's Long-Term Prospects Look Great

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 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

$5.1 billion

Industry

Internet software

Trailing-12-Month Revenue

$392.6 million

Management

Co-Founder/Chairman/CEO Marcos Galperin

CFO Pedro Arnt

Return on Equity (average, past 3 years)

38.2%

Cash/Debt

$197.7 million / $161.5 thousand

Dividend Yield

0.5%

Competitors


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

On CAPS, 94% of the 1,146 members who have rated MercadoLibre believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, totalFoolishness, succinctly summed up the MercadoLibre bull case for our community:

This South American Amazon like company is partially owned by eBay because eBay realized that they understood their market a lot better than eBay ever could. I have owned this company for over year and I believe that they are proceeding along a course that is moving along with the adoption of the Internet and e-commerce in most of the large South American nations. I think in 10 years this company's market cap will be 4 to 5 times what it is now.

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's Long-Term Prospects Look Great 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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