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

$4.3 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.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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