5-Star Stocks Poised to Pop: Telecom Argentina

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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, telephone company Telecom Argentina (NYS: TEO) has earned a coveted five-star ranking.

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

Telecom Argentina facts

Headquarters (Founded)Buenos Aires, Argentina (since 1990)
Market Cap$4.3 billion
IndustryIntegrated telecommunication services
Trailing-12-Month Revenue$4.1 billion
ManagementCEO Franco Bertone (since 2009)
CFO Adrian Calaza (since 2009)
Return on Equity (Average, Past 3 Years)30.9%
Cash/Debt$500.9 million / $33.7 million
Dividend Yield10.3%
CompetitorsAmerica Movil
Transportadora de Gas Del Sur

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 200 members who have rated Telecom Argentina believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, dreamjob, highlighted several of the stock's positives:

I found this on my own 'Surprise, Surprise' screen (high earnings surprises in the last 90 days, strong revenue growth in the last year, and low to moderate P/E ratio). [Free cash flow] and Owner Earnings are growing. [Return on invested capital] and [cash return on invested capital] metrics are also very solid (20 % each), and growing. Foolish Flow Ratio is below one for the most recent year. ... Revenue and EPS / Earnings are growing very nicely. It's 5 stars, and this looks very cheap right now. I think this should be priced somewhere in the $60 or greater.

Of course, despite its five-star rating, Telecom Argentina may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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