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
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.
|Headquarters (founded)||Buenos Aires, Argentina (1999)|
|Market Cap||$3.7 billion|
|Industry||Internet software and services|
|Trailing-12-Month Revenue||$340.7 million|
|Management||Co-Founder/Chairman/CEO Marcos Galperin
CFO Pedro Arnt
|Return on Equity (average, past 3 years)||38.4%|
|Cash/Debt||$170.6 million / $240.7 thousand|
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.
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.
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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.