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

Mercadolibre ( MELI) pushed the Diversified Services industry lower today making it today's featured Diversified Services loser. The industry as a whole closed the day up 0.7%. By the end of trading, Mercadolibre fell 38 cents (-0.5%) to $71.52 on light volume. Throughout the day, 445,884 shares of Mercadolibre exchanged hands as compared to its average daily volume of 621,400 shares. The stock ranged in price between $70.24-$72.37 after having opened the day at $71.50 as compared to the previous trading day's close of $71.90. Other company's within the Diversified Services industry that declined today were: Spar Group ( SGRP), down 11.5%, China Yida ( CNYD), down 11%, Rainmaker Systems ( RMKR), down 7.5%, and ATA ( ATAI), down 7.4%.

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 $3.23 billion and is part of the services sector. The company has a P/E ratio of 39.3, above the average diversified services industry P/E ratio of 39.1 and above the S&P 500 P/E ratio of 17.7. Shares are down 9.7% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Mercadolibre a buy, one analyst rates it a sell, and four 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 positive front, China HGS Real Estate ( HGSH), up 14%, Document Security Systems ( DSS), up 13.3%, InnerWorkings ( INWK), up 12%, and Cambium Learning Group ( ABCD), up 10.3%, were all gainers within the diversified services industry with Paychex ( PAYX) being today's featured diversified services industry winner.

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).