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Why Vodafone Is Poised to Keep Rallying

By Brian D. Pacampara, CFA - Apr 17, 2013 at 2:20PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, U.K. mobile giant Vodafone Group (VOD 2.75%) has earned a coveted five-star ranking.

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

Vodafone facts

Headquarters (founded)

Newbury, U.K. (1984)

Market Cap

$141.6 billion

Industry

Wireless telecommunication services

Trailing-12-Month Revenue

$71.8 billion

Management

CEO Vittorio Colao (since 2008)

CFO Andrew Halford (since 2005)

Return on Equity (average, past 3 years)

6.2%

Cash/Debt

$12.2 billion / $57.1 billion

Dividend Yield

3.5%

Competitors

AT&T

France Telecom

Telefonica

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

On CAPS, 95% of the 1,331 members who have rated Vodafone believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, Gainster, succinctly summed up the Vodafone bull case for our community:

The need for mobile voice and data is growing. It provides a comfort that people do not want to be without once they have become accustomed to it.

They have a low price / book ratio of 1.3, and they provide a good [dividend yield] of approx. 3.5%.

So I consider this a good growth stock with a nice dividend.

I personally used their service in Germany and Dominican Republic on vacations, buying a local sim, and I was very satisfied by their 3G coverage. The service in Germany was very good. The service in Dominican Republic was bad to put it mildly, but that's the standard outside the tourist resorts.

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

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Stocks Mentioned

Vodafone Group Plc Stock Quote
Vodafone Group Plc
VOD
$15.33 (2.75%) $0.41
AT&T Inc. Stock Quote
AT&T Inc.
T
$20.40 (0.94%) $0.19
Telefónica, S.A. Stock Quote
Telefónica, S.A.
TEF
$4.96 (1.02%) $0.05
Orange Stock Quote
Orange
ORAN
$12.26 (0.41%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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