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 $55.8 billion
Industry Integrated telecom services
Trailing-12-Month Revenue $78.8 billion
Management Chairman/CEO Cesar Alierta
COO Julio Linares
Return on Equity (average, past 3 years) 33.4%
Cash/Debt $8.4 billion / $84.7 billion
Competitors America Movil
BT Group
Vodafone Group

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

On CAPS, 97% of the 1,086 of the members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, Gouldberg, succinctly summed up the Telefonica bull case for our community: "If you think Spain will find a way through its debt crisis, [Telefonica] looks to be a good way to bet on the recovery. I liked it at $18, love it at $12. ... Free cash flow looks solid. [Return on Equity] for the last three years was about 30%."

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Telefonica may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the 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.