Why MercadoLibre Is Ready to Rebound

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 14, 2013 at 7:27PM
Technology and Telecom

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 (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

$3.7 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 (NASDAQ:AMZN)

eBay (NASDAQ: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.

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