Why Portugal Telecom Is Poised to Outperform

Brian Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecommunications company 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

$4.3 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$8.5 billion

Management

CEO Zeinal Bava (since 2008)

CFO Luis de Melo (since 2006)

Return on Equity (average, past 3 years)

9.1%

Cash/Debt

$4.4 billion / $14.4 billion

Dividend Yield

13.4%

Competitors

American Movil

Vodafone Group


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

On CAPS, 97%of the 286 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star EvanBuck, tapped the stock as a particularly attractive income opportunity:

PT has a nice dividend for you to receive while you wait for the stock to rise. Beaten down because of Eurozone concerns, but PT has over half of its revenue derived outside of [Portugal]. PT has some good potential to grow over the next five years.

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

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Vodafone. 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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