4-Star Stocks Poised to Pop: MetroPCS

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless telecom carrier MetroPCS Communications (NYS: PCS) has earned a respected four-star ranking.

With that in mind, let's take a closer look at MetroPCS' business and see what CAPS investors are saying about the stock right now.

MetroPCS facts

Headquarters

Richardson, Texas

Market Cap

$3.42 billion

Industry

Wireless telecommunication services

Trailing-12-Month Revenue

$4.49 billion

Management

Founder/Chairman/CEO Roger Linquist

President/COO Thomas Keys

Return on Equity (Average, Past 3 Years)

8.2%

Cash/Debt

$2.16 billion / $4.75 billion

Competitors

AT&T (NYS: T)

Sprint Nextel (NYS: S)

Verizon Communications (NYS: VZ)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94% of the 459 members who have rated MetroPCS believe the stock will outperform the S&P 500 going forward. These bulls include mpd8822 and odwilliams.

Just last week, mpd8822 touched on MetroPCS' recent sell-off as a possible buying opportunity: "[P]rice due to panic and overselling. The company has performed well for quite a number of quarters and should be able realign under the increased pressure from the economy."

Over the next five years, in fact, MetroPCS is still expected to grow its bottom line at a rate of 29% annually. That's much faster than that of rivals AT&T (6%), Sprint (5.5%), and Verizon (8.5%).

CAPS member odwilliams elaborates on the bull case:

I believe that Metro PCS is going to emerge as a top three wireless phone service provider in the next 2-4 years. Metro PCS appears to be a run of the mill bargain cell phone provider, but they offer plans that stomp out others dollar for dollar. As technology increases so will Metro PCS's phone platforms and networks. In 10 years Metro PCS has grown from a Metropolian area only service provider to now covering 90% of the United States.

What do you think about MetroPCS, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of AT&T. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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