4-Star Stocks Poised to Pop: Level 3 Communications

3 Recommendations

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Internet network operator Level 3 Communications (Nasdaq: LVLT) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Level 3's business, and see what CAPS investors are saying about the stock right now.

Level 3 facts

Headquarters (Founded)

Broomfield, Colorado (1884)

Market Cap

$4.80 billion

Industry

Diversified Communication Services

TTM Revenue

$4.34 billion

Management

CEO James Crowe (since 1997)

CFO Sunit Patel (since 2003)

Close Competitors

AT&T (NYSE: T),

Sprint Nextel (NYSE: S)

CAPS members bullish on LVLT also bullish on

Apple (Nasdaq: AAPL),

Cisco Systems (Nasdaq: CSCO)

CAPS members bearish on LVLT also bearish on

Ford Motor (NYSE: F),

Microsoft (Nasdaq: MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 250 of 273 of the All-Star members who have rated Level 3 -- some 92% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include lebelecker and j0ej0ej0e, both of whom are ranked in the top 20% of our community.

In June 2007, lebelecker listed several of the stock's bullish qualities: "Internet backbone, aggressive market consolidator that is getting debt under control and is growing revenue consistently. A new company doing this well in a new market is a tribute to the people running the show and they will be rewarded...someday."

In a more recent pitch last October, j0ej0ej0e follows that line of thinking, citing Level 3's attractive assets as the big reason to remain patient:

Tremendously valuable assets. If they every figure out how to monetize it-watch out. This is a clear buyout target for a number of players, and also has a ton of potential as a stand-alone business. Priced for the worst (deservably so based on past performance, but things are a-changing)

What do you think about Level 3, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.

Sprint Nextel and Microsoft are Motley Fool Inside Value recommendations. Apple is a Stock Advisor recommendation. Try any of our Foolish newsletter services free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 723827, ~/articles/articlehandler.aspx, 11/21/2008 9:57:04 PM,

Sign up for FREE Motley Fool site access!

Already registered? Login Here

It’s FREE! Enter your email address, and we’ll rush you to the article you're looking for right now.

Privacy / Legal Information

We will use your email address only to keep you informed about updates to our web site and about other products and services that we think might interest you. The Motley Fool respects your privacy. Please read our Privacy Statement

.

Related Tickers

Level 3 Communications, Inc.

LVLT Down! $0.79 -0.02 (-2.54%) 4:00 PM
CAPS Rating:
1733 Outperforms
100 Underperforms
Rate This Stock

Major Indices

S&P 500800.03+6.32%
DJIA8,046.42+6.54%
NASD1,384.35+5.18%
Updated: 4:07:36 PM
Sponsored by:

The Motley Poll

What changes are you making to your portfolio?

Sponsored by: