5-Star Bargain Stocks Ready to Bounce Back: 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 and see what CAPS investors are saying about the stock right now.

Telefonica facts

Headquarters (founded)

Madrid (1924)

Market Cap

$63.0 billion


Integrated telecom services

Trailing-12-Month Revenue

$83.1 billion


Chairman/CEO Cesar Izuel
COO Julio Lopez

Return on Equity (average, past 3 years)



$8.9 billion / $89.2 billion


America Movil (NYS: AMX)
BT Group (NYS: BT)
Vodafone Group (NAS: VOD)

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

On CAPS, 97% of the 1,087 of the members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, All-Star JakilaTheHun, tapped the stock as a particularly tempting value selection:

The stock is getting battered for a few reasons:

(1) Significant debt load,
(2) Eurozone exposure, and
(3) Brazilian downturn

All of these are a bit frightening, but overall, I find the stock interesting enough to consider. Even if the Brazilian downturn harms Telefonica in Latin America for a few years, I still think that there's a ton of growth left in that region. The Eurozone crisis certainly harms Telefonica, but this is also a telecom company and not a bank. People are reluctant to eliminate their phone service even in the dismal economic environment of the eurozone.

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.

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The article 5-Star Bargain Stocks Ready to Bounce Back: Telefonica originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Vodafone Group. 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 Motley Fool has a disclosure policy.

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