Why Telecom Argentina Is Ready to Rebound

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Latin American telecom company has earned a coveted five-star ranking.

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

Telecom Argentina facts

Headquarters (founded)

Buenos Aires, Argentina (1990)

Market Cap

$3.0 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$4.9 billion

Management

CEO Franco Bertone (since 2009)

CFO Adrian Calaza (since 2009)

Return on Equity (average, past 3 years)

31%

Cash/Debt

$875.2 million / $32.7 million

Competitors


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

On CAPS, 95%of the 237 members who have rated Telecom Argentina believe the stock will outperform the S&P 500 going forward.

Late last month, one of those Fools, All-Star Staka, offered a balanced take on the Telecom Argentina opportunity:

Positive:
-Low P/E & high growth
-Good dividend
-Momentum

Negative:
-Political risks (the reason it is so cheap)
-Inflation in Argentine peso

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

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

The article Why Telecom Argentina Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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