4-Star Stocks Poised to Pop: Portugal Telecom

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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, Portugal Telecom (NYS: PT) has earned a respected four-star ranking.

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

Portugal Telecom facts

Headquarters (founded)Lisbon, Portugal (1994)
Market Cap$4.4 billion
IndustryIntegrated telecommunication services
Trailing-12-Month Revenue$8.1 billion
ManagementCEO Zeinal Bava (since 2008)
CFO Luis de Melo (since 2006)
Return on Equity (average, past 3 years)18.9%
Cash/Debt$7.4 billion / $16.1 billion
Dividend Yield7.6%*
Competitors

Sources: S&P Capital IQ and Motley Fool CAPS. *Based on most recent semiannual dividend.

On CAPS, 95% of the 250 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward.  

Late last month, one of those Fools, Coralreefer1, tapped the stock as an inexpensive income opportunity: "Cell phones aren't going away, nor is PT, especially with expansion into South America and Africa. Low price, dividend and upgrade from 2G to 4G technology can only assure success in the hi-tech age and help PT compete with other phone companies."

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. Of course, despite a strong four-star rating, Portugal Telecom 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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