Why Telecom Argentina Is Ready to Rebound

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 Telecom Argentina (NYSE: TEO  ) 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

American Movil

Transportadora de Gas del Sur

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.


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