5-Star Stocks Poised to Pop: Portugal Telecom

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecommunications company Portugal Telecom (NYS: PT) has earned a coveted five-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

$3.9 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$8.5 billion

Management

CEO Zeinal Bava (since 2008)
CFO Luis de Melo (since 2006)

Return on Equity (average, past 3 years)

16.7%

Cash/Debt

$5.0 billion / $13.6 billion

Dividend Yield

16%

Competitors

America Movil
Optimus
Vodafone Group


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

On CAPS, 94% of the 269 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward.

Less than two months ago, one of those bulls, StockClueless, tapped Portugal Telecom as a solid bargain opportunity:

The market is confused. European telecoms are diversified into non-European markets, and even in Europe they have to continue receiving high revenues (nobody will cancel their cell phones if Greece leaves the Euro, or something like that happens). Portugal would have to see a major depression before [Portugal Telecom] would start losing money.

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, Portugal Telecom may not be your top choice.

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The article 5-Star Stocks Poised to Pop: Portugal Telecom originally appeared on Fool.com.

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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