5 Retail Stocks to Buy According to Greg Poole’s Echo Street Capital

2. MercadoLibre, Inc. (NASDAQ:MELI)

Echo Street Capital’s Stake Value: $115 million

Percentage of Echo Street Capital’s 13F Portfolio: 0.8%

Number of Hedge Fund Holders: 68

MercadoLibre, Inc. (NASDAQ:MELI) is a Latin American electronic commerce platform provider. The company allows merchants and sellers to list and sell their products online.

Mr. Poole’s hedge fund owned 68,563 MercadoLibre, Inc. (NASDAQ:MELI) shares during the third quarter of last year. These were worth $115 million and represented 0.8% of the fund’s portfolio. During the same time period, 68 of the 867 hedge funds polled by Insider Monkey also owned the company’s shares.

MercadoLibre, Inc. (NASDAQ:MELI) brought in $1.86 billion through revenue and $1.92 through GAAP EPS in its fiscal Q3, beating analyst estimates for revenue only. Its price target was raised to $2,200 from $2,100 by Barclays in November 2021, who shared that the company has an attractive value proposition and services.

MercadoLibre, Inc. (NASDAQ:MELI)’s largest investor is Panayotis Takis Sparaggis’ Alkeon Capital Management who owns 445,136 shares worth $747 million.

LRT Capital Management mentioned the company in its Q3 2021 investor letter. It commented that:

“Mercadolibre, Inc. (MELI) – the LatAm eCommerce, shipping, and payments company, is now trading at a very attractive valuation – its lowest P/S ratio ever. The concerns here have to do with the recession in Brazil and slowing economic growth throughout the region.”