Why Portugal Telecom Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecommunications company Portugal Telecom (NYSE: PT  ) 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 Telecom facts

Headquarters (Founded)

Lisbon, Portugal (1994)

Market Cap

$4.2 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$8.7 billion

Management

CEO Zeinal Bava (since 2008)
CFO Luis de Melo (since 2006)

Return on Equity (Average, Past 3 Years)

10.4%

Cash/Debt

$4.5 billion / $14.6 billion

Dividend Yield

14.4%

Competitors

America Movil (NYSE: AMX  )
Optimus
Vodafone Group
(NYSE: AMX  )

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

On CAPS, 95% of the 288 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, Carioca58, tapped Portugal Telecom as a particularly attractive bargain opportunity:

The market is confused. European telecoms are diversified into non-European markets, and even in Europe they have to continue receiving high revenues (nobody will cancel their cell phones if Greece leaves the Euro, or something like that happens). Portugal would have to see a major depression before [Portugal Telecom] would start losing money.

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Read/Post Comments (1) | Recommend This Article (3)

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.

  • Report this Comment On December 31, 2012, at 10:09 PM, vaderblue wrote:

    Thanks for the insight. Sounds reasonable. I own PT and buy it every year. I buy twice a year. I found this better than every quarter.

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