5-Star Stocks Poised to Pop: Telefonica
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 |
Industry | Integrated telecom services |
Trailing-12-Month Revenue | $80.9 billion |
Management | Chairman/CEO Cesareo Izuel |
Return on Equity (average, past 3 years) | 29.9% |
Cash/Debt | $10.1 billion / $85.2 billion |
Dividend Yield | 10.1% |
Competitors | America Movil |
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 thisarticle 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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