Why Cincinnati Bell 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 Cincinnati Bell has earned a respected four-star ranking.

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

Cincinnati Bellfacts

Headquarters (founded)

Cincinnati, Ohio (1873)

Market Cap

$969.2 million

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$1.5 billion

Management

CEO Theodore Torbeck (since January 2013)

CFO Kurt Freyberger (since August 2011)

Return on Capital (average, past 3 years)

11.1%

Cash/Debt

$7.7 million / $2.6 billion

Competitors

AT&T

Sprint Nextel

Verizon Communications


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

On CAPS, 91% of the 154 members who have rated Cincinnati Bell believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star 3Fairfield, succinctly summed up the bull case for our community:

[Cincinnati Bell] just spun off CyrusOne, a big data storage REIT, and retains 70+% of ownership so look for growth and increased cash flow as a benefit of the break up. Also, last week [Cincinnati Bell] named Ted Torbeck CEO -- Torbeck is known for his CEO turnaround expertise and expects to grow the wireless end of the business. Hedge funds including BlackRock and [Gabelli Funds] say the stock looks promising and are two of the largest stakeholders. I am cautiously optimistic.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cincinnati Bell may not be your top choice.

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The article Why Cincinnati Bell Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends BlackRock. The Motley Fool owns shares of Cincinnati Bell. 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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