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 (NASDAQ:MELI) 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

$3.1 billion

Industry

Internet software and services

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

0.6%

Competitors

Amazon.com (NASDAQ: AMZN)

eBay (NASDAQ: EBAY)

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

On CAPS, 94% of the 1,147 members who have rated MercadoLibre believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, adamlevy, succinctly summed up the MercadoLibre bull case:

The Latin American market has a lot of potential for growth. ... Internet access is growing at a phenomenal rate in the region, so it won't take long for the company to realize this potential. Online commerce is huge in the area. ...

Earnings misses don't concern me. ROE is good, and debt levels are minimal. The earnings growth is still fantastic, and I believe the P/E multiple is justified by the growth potential. It has a lower PEG than eBay. It's also trading at a discount to its historical P/S ratio.

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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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com and MercadoLibre. Motley Fool newsletter services recommend 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.