Mercadolibre Inc. (MELI): Today's Featured Diversified Services Winner

Mercadolibre ( MELI) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 1%. By the end of trading, Mercadolibre rose $1.67 (2.3%) to $76.04 on heavy volume. Throughout the day, 924,616 shares of Mercadolibre exchanged hands as compared to its average daily volume of 595,700 shares. The stock ranged in a price between $74.46-$77.19 after having opened the day at $74.50 as compared to the previous trading day's close of $74.37. Other companies within the Diversified Services industry that increased today were: CIBT Education Group ( MBA), up 19.1%, Genetic Technologies ( GENE), up 6.3%, Kratos Defense & Security Solutions ( KTOS), up 5.3%, and China Distance Education Holdings ( DL), up 5.2%.

MercadoLibre, Inc., together with its subsidiaries, hosts online commerce and payments platforms in Latin America. Its services are designed to provide its users with mechanisms to buy, sell, pay for, and collect on e-commerce transactions. Mercadolibre has a market cap of $3.27 billion and is part of the services sector. The company has a P/E ratio of 39.9, below the average diversified services industry P/E ratio of 42.9 and above the S&P 500 P/E ratio of 17.7. Shares are down 6.5% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Mercadolibre a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Mercadolibre as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, China Yida ( CNYD), down 23.8%, Cambium Learning Group ( ABCD), down 17.9%, Ambow Education ( AMBO), down 17.6%, and WidePoint Corporation ( WYY), down 14.8%, were all losers within the diversified services industry with MasterCard Incorporated ( MA) being today's diversified services industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).
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