Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American fixed-line telecom services specialist Telecomunicacoes de Sao Paulo (NYSE: TSP) has earned a coveted five-star ranking.

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

Telesp facts

Headquarters (Founded)

Sao Paulo, Brazil (1998)

Market Cap

$13.76 billion


Integrated telecom services

Trailing-12-Month Revenue

$9.8 billion


Chairman/CEO Antonio da Silva

CFO Gilmar Camurra

Return on Equity (Average, Past 3 Years)



$1.4 billion / $1.5 billion

Dividend Yield



Brasil Telecom (NYSE: BTM)

Tele Norte Leste Participacoes (NYSE: TNE)

Telecom Italia (NYSE: TI)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 240 members who have rated Telesp believe the stock will outperform the S&P 500 going forward. These bulls include All-Star kurtdabear, who is ranked in the top 15% of our community, and networkr.

A couple of months ago, kurtdabear tapped Telesp as a solid way to gain some Brazilian exposure: "Country is growing exponentially compared to U.S., and TSP provides a vital service. ... Sounds like a good bet to me!"

In fact, Telesp's three-year average return on equity of 21.3% easily tops that of listed rivals Brasil Telecom (5.5%), Tele Norte (2.5%), and Telecom Italia (9.4%).

CAPS member networkr expands on the Telesp outperform argument:

Although lagging somewhat compared to other Latin American utilities, this company maintains a near monopoly in many regions in which it operates. With the continued economic growth in Latin America and notably Brazil, this one should provide a respectable return for investors.

What do you think about Telesp, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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.