Recs

6

5-Star Stocks Poised to Pop: Telefonica

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish telecom giant Telefonica (NYSE: TEF  ) has earned a coveted five-star ranking.

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

Telefonica facts

Headquarters (founded) Madrid (1924)
Market Cap $70.1 billion
Industry Integrated telecom services
Trailing-12-Month Revenue $85.4 billion
Management Chairman/CEO Cesar Izuel
COO Julio Lopez
Return on Equity (average, past 3 years) 31%
Cash/Debt $8.7 billion / $88.9 billion
Dividend Yield 10.2%
Competitors America Movil S.A.B. de C.V.
BT Group
Vodafone Group

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

On CAPS, 98% of the 969 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those bulls, All-Star joryko, tapped the stock as a tempting turnaround pick:

This one has continued slipping for over a year now as it dropped from the mid $20's. ... However, it seems to have found a little support at this mark and has not dropped much below the $17-$20 realm in the last five years. ...

[Telefonica] is in a solid industry to weather the current conditions in Europe and has dropped to a point that I can't resist buying, simply for the value if nothing else.

Oh yea, [Telefonica] is one of those popular dividend plays too I guess. 

Of course, despite its strong five-star rating, Telefonica 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 9 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. Motley Fool newsletter services have recommended buying shares of Vodafone. 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 (1) | Recommend This Article (6)

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 April 06, 2012, at 12:22 PM, burglars wrote:

    Regarding the adviseability of purchasing Telefonica,you do a disfavor by failing to mention that Telefonicas present dividend is NOT safe and may be cut! Please respond!

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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

9/30/2014 4:05 PM
TEF $15.37 Up +0.03 +0.00%
Telefonica S.A. (A… CAPS Rating: ****

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