Why Portugal Telecom Is Poised to Outperform

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 has earned a coveted five-star ranking.

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

Portugal Telecomfacts

Headquarters (Founded)

Lisbon, Portugal (1994)

Market Cap

$4.2 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$8.7 billion

Management

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

Return on Equity (Average, Past 3 Years)

10.4%

Cash/Debt

$4.5 billion / $14.6 billion

Dividend Yield

14.4%

Competitors

America Movil
Optimus
Vodafone Group


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

On CAPS, 95% of the 288 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, Carioca58, tapped Portugal Telecom as a particularly attractive 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.

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The article Why Portugal Telecom Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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