Why Vodafone 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, U.K. mobile giant Vodafone Group has earned a coveted five-star ranking.

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

Vodafine facts

Headquarters (founded)

Newbury, U.K. (1984)

Market Cap

$137.4 billion

Industry

Wireless telecommunication services

Trailing-12-Month Revenue

$71.8 billion

Management

CEO Vittorio Colao (since 2008)
CFO Andrew Halford (since 2005)

Return on Equity (average, past 3 years)

6.2%

Cash/Debt

$12.2 billion / $57.1 billion

Dividend Yield

3.7%

Competitors

AT&T
France Telecom
Telefonica


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

On CAPS, 95% of the 1,328 members who have rated Vodafone believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, Option1307, succinctly summed up the bull case for community:

[Vodafone] owns a large stake in Verizon wireless and the market is not recognizing this. Add into the mix that Verizon currently pays [Vodafone] a nice dividend annually for their Verizon wireless stake and that this is a David Einhorn pick and the odds are in your favor!

Picked up some shares at [$26] and will hold until this thesis plays out or things drastically change. You get a pretty nice dividend to sit and wait as well so no reason to hurry and sell this one.

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

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends France Telecom (ADR) and Vodafone. The Motley Fool owns shares of France Telecom (ADR). 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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