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

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 lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Mercadolibre fell $4.95 (-4.0%) to $117.59 on heavy volume. Throughout the day, 2,042,758 shares of Mercadolibre exchanged hands as compared to its average daily volume of 523,600 shares. The stock ranged in price between $116.18-$122.15 after having opened the day at $121.69 as compared to the previous trading day's close of $122.54. Other companies within the Diversified Services industry that declined today were: Lionbridge Technologies ( LIOX), down 17.9%, General Employment ( JOB), down 11.1%, Document Security Systems ( DSS), down 11.0% and Zillow ( Z), down 9.9%.
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MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings through e-commerce transactions. Mercadolibre has a market cap of $4.6 billion and is part of the services sector. The company has a P/E ratio of 43.7, above the S&P 500 P/E ratio of 17.7. Shares are up 32.3% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 3 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. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Grand Canyon Education ( LOPE), down 14.1%, ENGlobal Corporation ( ENG), down 12.5%, Spark Networks ( LOV), down 10.0% and YY ( YY), down 9.9% , were all gainers within the diversified services industry with Ulta Salon Cosmetics & Fragrances ( ULTA) being today's featured diversified services industry leader.

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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