Why France Telecom Is Poised to Bounce Back

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, French telecommunications giant France Telecom has earned a respected four-star ranking.

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

France Telecom facts

Headquarters (founded)

Paris (1990)

Market Cap

$26.5 billion

Industry

Integrated telecom services

Trailing-12-Month Revenue

$56.3 billion

Management

Chairman/CEO Stephane Richard

CFO Gervais Pellissier

Return on Equity (average, past 3 years)

9.6%

Cash/Debt

$11.0 billion / $52.0 billion

Dividend Yield

14.4%

Competitors

Bouygues

Societe Francaise du Radiotelephone

Vodafone Group


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

On CAPS, 96% of the 853 members who have rated France Telecom believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, compustat, tapped France Telecom as a particularly attractive bargain opportunity:

This stock is another case of irrational pricing. It's not the greatest company, but it is the equivalent of too big to fail in France. This company is also laying the necessary groundwork for substantial expansion into emerging markets. Decent growth prospects over a 3 to 5 year horizon along with the fact that this company is grossly undervalued makes it a solid long pick.

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

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The article Why France Telecom Is Poised to Bounce Back originally appeared on Fool.com.

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