Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless telecom carrier MetroPCS Communications
With that in mind, let's take a closer look at MetroPCS' business and see what CAPS investors are saying about the stock right now.
|Market Cap||$3.01 billion|
|Industry||Wireless telecommunication services|
|Trailing-12-Month Revenue||$4.67 billion|
|Management||Founder/Chairman/CEO Roger Linquist
President/COO Thomas Keys
|Return on Equity (Average, Past 3 Years)||8.3%|
|Cash/Debt||$2.14 billion / $4.77 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 465 members who have rated MetroPCS believe the stock will outperform the S&P 500 going forward. These bulls include Palido and All-Star JTMcGee, who is ranked in the top 5% of our community.
Over the next five years, in fact, MetroPCS is expected to grow its bottom line at a brisk rate of 27% annually. That's much faster than that of rivals AT&T (3%), Sprint (5%), and Verizon (12%).
I tend to shy away from companies without a long-term economic moat -- those without a real competitive advantage.
However, I am a fan of acquisition targets in any space, and this firm is definitely a takeover target. At present valuation, the company is very cheap. Its assets are also increasing in value with each day as more customers join this tiny player.
People miss the beauty in firms like this. When the economy performs poorly, consumers switch to prepaid cellular devices. However, when the economy strengthens, those who couldn't afford a phone at all also go to prepaid services.
I see competitors in this space cannibalising their own pre-paid customers to maintain margins on subscription plans. Their customers who wish to remain on a prepaid plan will seek other options.
I like this as a five-year outperform.
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