5-Star Stocks Poised to Pop: Telefonica

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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, Spanish telecom giant Telefonica (NYS: TEF) has earned a coveted five-star ranking.

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

Telefonica facts

Headquarters (founded)Madrid (1924)
Market Cap$70.1 billion
IndustryIntegrated telecom services
Trailing-12-Month Revenue$85.4 billion
ManagementChairman/CEO Cesar Izuel
COO Julio Lopez
Return on Equity (average, past 3 years)31%
Cash/Debt$8.7 billion / $88.9 billion
Dividend Yield10.2%
CompetitorsAmerica Movil S.A.B. de C.V.
BT Group
Vodafone Group

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

On CAPS, 98% of the 969 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those bulls, All-Star joryko, tapped the stock as a tempting turnaround pick:

This one has continued slipping for over a year now as it dropped from the mid $20's. ... However, it seems to have found a little support at this mark and has not dropped much below the $17-$20 realm in the last five years. ...

[Telefonica] is in a solid industry to weather the current conditions in Europe and has dropped to a point that I can't resist buying, simply for the value if nothing else.

Oh yea, [Telefonica] is one of those popular dividend plays too I guess. 

Of course, despite its strong five-star rating, Telefonica 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 9 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. Motley Fool newsletter services have recommended buying shares of Vodafone. 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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