Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American electricity provider CPFL Energia (NYSE:CPL) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

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

CPFL facts

Headquarters (founded)

Sao Paulo, Brazil (1998)

Market Cap

$6.76 billion


Foreign Utilities

TTM Revenue

$4.15 billion


CEO Wilson Ferreira, Jr. (since 2002)

CFO Jose Antonio de Almeida Filippo (since 2004)

Return on Equity (average, last three years)


Dividend Yield



Companhia Paranaense de Energia (NYSE:ELP),


CAPS members bullish on CPL also bullish on:

Vale (NYSE:RIO),

Petroleo Brasileiro (NYSE:PBR)

CAPS members bearish on CPL also bearish on:

First Solar (NASDAQ:FSLR),


Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 99% of the 558 members who have rated CPFL believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star MTBB and GrowthAndIncome.

Last month, MTBB described CPFL in glowing terms: "Solid long term prospects with a considerable moat. Stock price will be volatile along with the growth of the brazilian economy but should grow better than average over the long term."

In an earlier pitch from November, GrowthAndIncome shares that sentiment, tapping CPFL as an electric bargain opportunity:

A utility company with a large portion of its audience captive. Brazilian economic growth should result in increased energy usage and the tariffs should improve in 2009. Solid dividend. Low P/E at the time of this pick. decreasing fossil fuel price should improve margins in some of the company's power plants.

What do you think about CPFL, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Petrobras is a Motley Fool Income Investor pick. The Fool's disclosure policy always gets a perfect score.