Please ensure Javascript is enabled for purposes of website accessibility

Why Portugal Telecom Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 18, 2013 at 11:04AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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, telecommunications company Portugal Telecom (NYSE: PT) has earned a coveted five-star ranking.

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

Portugal Telecom facts

Headquarters (founded)

Lisbon, Portugal (1994)

Market Cap

$4.3 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$8.5 billion

Management

CEO Zeinal Bava (since 2008)

CFO Luis de Melo (since 2006)

Return on Equity (average, past 3 years)

9.1%

Cash/Debt

$4.4 billion / $14.4 billion

Dividend Yield

13.4%

Competitors

American Movil

Vodafone Group

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

On CAPS, 97% of the 286 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star EvanBuck, tapped the stock as a particularly attractive income opportunity:

PT has a nice dividend for you to receive while you wait for the stock to rise. Beaten down because of Eurozone concerns, but PT has over half of its revenue derived outside of [Portugal]. PT has some good potential to grow over the next five years.

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

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Vodafone Group Plc Stock Quote
Vodafone Group Plc
VOD
$15.33 (2.75%) $0.41
América Móvil, S.A.B. de C.V. Stock Quote
América Móvil, S.A.B. de C.V.
AMX
$21.30 (1.62%) $0.34

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.