Key Takeaways
- Westwood Global Investments opened a stake in MercadoLibre and added to Yum China and HDFC Bank in the second quarter, its latest 13F shows.
- Since June 30, Yum China is up 12%, while MercadoLibre and HDFC Bank are down 4% and 14%.
- Yum China grew its operating margin for a ninth straight quarter, and its mean price target has risen over the past year.
- Yum China reports on November 3 and MercadoLibre on November 4.
An emerging-markets manager made three US-listed bets last quarter. Brazil’s election, an RBI hike and a bank probe have split them apart since June.
Westwood Global Investments’ 13F for the quarter ended June 30, filed August 7, shows a new stake in MercadoLibre (MELI) and bigger ones in Yum China (YUMC) and HDFC Bank (HDB). The Boston fund held $2.85 billion of US-listed stocks across 11 positions.
Since quarter-end, Yum China is up 12%, MercadoLibre is down 4%, and HDFC Bank is down 14%. All three still trade 22% to 41% below their 52-week highs. This week matters for two of them: Yum China reports on Tuesday, November 3, and MercadoLibre on Wednesday, November 4. The fund’s September-quarter 13F is due by November 16.
MercadoLibre Is Growing Faster and Earning Less
MercadoLibre was the new name: 203,266 shares worth $345 million at June 30. That was 12.1% of the fund’s 13F stocks and its third-biggest position. The stock is down 4% from that quarter-end price (a 13F doesn’t show what the fund paid).
The second quarter shows the trade-off. Revenue rose 50% to $10.2 billion. Operating income fell 17% to $683 million, and the operating margin shrank to 6.7%, as MercadoLibre kept spending on free shipping and its credit card. Analysts have cut their 2026 EPS estimate 42% since September 2025, from $66.55 to $38.38, and their mean price target has dropped 21%:
Then Brazil voted. MercadoLibre stock fell 10% in a week, most of it on October 26, the first trading day after Lula won the runoff. Citi upgraded the stock to Buy after the drop, though it trimmed its target to $2,050 from $2,100.
Even the lowest target, $1,750, sits above the $1,624.53 close. At about 39x forward earnings, the stock trades well below its 48x quarter-end average since 2023. Wednesday’s results will show whether that 6.7% margin has stopped sliding.
TIKR Tracks 26 Analysts on MercadoLibre. How Many Say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on MercadoLibre, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See MercadoLibre’s Analyst Ratings
Yum China Is Getting Both
Where MercadoLibre is giving up profit for growth, Yum China is getting both. The fund raised its stake 47% to 7.01 million shares, worth $287 million at June 30, or 10.1% of its 13F stocks.
In the second quarter, operating profit rose 14% to $348 million. The 11.1% operating margin was up 20 basis points, the ninth straight quarter of expansion. Yum China also opened 560 net new stores, a second-quarter record, and said it was on track to return $1.5 billion to shareholders in 2026, about 10% of its market value at the time.
There is a soft spot. Restaurant margin was flat at 16.1% as delivery pushed rider costs up, and management warned of tougher comparisons in the second half.
The mean target is $62, up from $58 a year ago. Even the lowest target, $56, is well above the $45.78 close, and the stock trades at about 14x forward earnings.
HDFC Bank’s Year Keeps Getting Messier
The fund nearly quadrupled its HDFC Bank stake, up 293% to 4.49 million shares worth $116 million, or 4.1% of its 13F stocks. That’s the bet that has gone worst since.
The bank’s shares in India were down 30% this year as of October 22, and October piled on:
- October 7: The Reserve Bank of India raised its repo rate 25 basis points to 5.50%, its first hike since February 2023, and said rate cuts are off the table for now.
- October 17: HDFC Bank reported standalone net profit up just 4.7% to ₹19,510 crore (about $2 billion).
- October 21: Bloomberg reported that an internal probe had found evidence two senior executives shared confidential business strategies and potentially market-sensitive information with outsiders. The bank confirmed a review is underway but didn’t comment on the findings.
- October 27: Anup Bagchi took over as chief executive, the first to come from outside the bank.
The mean target has fallen 31%, from $44 to $30. Even the lowest target, $26.20, sits above the $22.18 close, but analysts have spent the year marking targets down toward the price.
Why Yum China Is the Easiest of the Three to Own
All three earn their money in currencies a US investor doesn’t control, and MercadoLibre’s election week showed how fast that can hit a stock.
Yum China is the one where the business and the Street point the same way. Its margin has grown nine quarters running, its target is rising, and it trades at about 14x forward earnings while handing back roughly 10% of its market value this year.
MercadoLibre could pay off more if its margin turns, since analysts expect EPS to rebound 46.5% in 2027, but they are still cutting their numbers. HDFC Bank needs its new CEO to close out the probe first.
Tuesday is the first test. A tenth straight quarter of operating margin growth, against the tougher comparison management flagged, would make the Yum China case stronger.
So What Are These Three Stocks Actually Worth?
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
