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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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 up 0.3%. By the end of trading, Mercadolibre rose $3.28 (3.7%) to $90.87 on average volume. Throughout the day, 764,809 shares of Mercadolibre exchanged hands as compared to its average daily volume of 586,900 shares. The stock ranged in a price between $86.71-$91.91 after having opened the day at $88.10 as compared to the previous trading day's close of $87.59. Other companies within the Diversified Services industry that increased today were: Mastech Holdings ( MHH), up 14.1%, China HGS Real Estate ( HGSH), up 13.3%, Checkpoint Systems ( CKP), up 8.1%, and Cambium Learning Group ( ABCD), up 8%.
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MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide its users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings via e-commerce transactions. Mercadolibre has a market cap of $3.84 billion and is part of the services sector. The company has a P/E ratio of 37.8, above the S&P 500 P/E ratio of 17.7. Shares are up 10.7% 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 two rate it a hold.

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

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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