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$56.6 billion
IndustryIntegrated telecom services
Trailing-12-Month Revenue$80.9 billion
ManagementChairman/CEO Cesareo Izuel
COO Julio Lopez
Return on Equity (average, past 3 years)29.9%
Cash/Debt$10.1 billion / $85.2 billion
Dividend Yield10.1%
CompetitorsAmerica Movil
BT Group
Vodafone Group

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

On CAPS, 97% of the 1,084 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, sbtruitt, tapped the stock as an attractive bargain opportunity:

[Telefonica] is currently being punished for the Euro crisis and in particular Spain's current recession. Even with a further reduction (but hopefully not) of their dividend, it will only add to the [share price] increase going forward. [Latin American] exposure ... will add to their rise. Great low to buy into now, with the bonus of a great [dividend].  

If you want market-topping returns, 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 its 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 "The 3 Dow Stocks Dividend Investors Need," which uncovers a few 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 theTrackPoisedToCAPS 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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