Friday, October 18, 2013

Why MercadoLibre's Long-Term Prospects Look Great

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

$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

Amazon.com

eBay

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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