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5-Star Stocks Poised to Pop: Telecom Argentina

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telephone 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's business and see what CAPS investors are saying about the stock right now.

Telecom Argentina facts

Headquarters (Founded) Buenos Aires, Argentina (since 1990)
Market Cap $4.3 billion
Industry Integrated telecommunication services
Trailing-12-Month Revenue $4.1 billion
Management CEO Franco Bertone (since 2009)
CFO Adrian Calaza (since 2009)
Return on Equity (Average, Past 3 Years) 30.9%
Cash/Debt $500.9 million / $33.7 million
Dividend Yield 10.3%
Competitors America Movil
Transportadora de Gas Del Sur

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

On CAPS, 95% of the 200 members who have rated Telecom Argentina believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, dreamjob, highlighted several of the stock's positives:

I found this on my own 'Surprise, Surprise' screen (high earnings surprises in the last 90 days, strong revenue growth in the last year, and low to moderate P/E ratio). [Free cash flow] and Owner Earnings are growing. [Return on invested capital] and [cash return on invested capital] metrics are also very solid (20 % each), and growing. Foolish Flow Ratio is below one for the most recent year. ... Revenue and EPS / Earnings are growing very nicely. It's 5 stars, and this looks very cheap right now. I think this should be priced somewhere in the $60 or greater.

Of course, despite its five-star rating, Telecom Argentina may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around 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 new TrackPoisedTo CAPS account.

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


Read/Post Comments (2) | Recommend This Article (0)

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 January 30, 2012, at 3:28 PM, mjtria wrote:

    What do you make of the problems in Argentina? Reputedly authorities are using cash smuggling dogs to detect people trying to take dollars out of the country. Such behaviors generally do not bode well for an economy.

  • Report this Comment On January 30, 2012, at 5:58 PM, rockbox64 wrote:

    TEO cut their dividend didn't they and its not coming back, correct?

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I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

12/19/2014 4:02 PM
TEO $20.13 Up +0.11 +0.55%
Telecom Argentina… CAPS Rating: *****

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