Telecom Argentina: A 'super stock'

Our featured stocks are selected based on the investing criteria of several legendary investors. Telecom Argentina SA (TEO) has a guru score of 100% based on the price-to-sales strategy of Kenneth Fisher.

Indeed, based on the Kenneth Fisher's price-to-sale strategy, Telecom Argentina would be considered a "Super Stock".

Under Kenneth Fisher's strategy, the prospective company should have a low Price/Sales ratio. Companies with Price/Sales ratios below 0.75 are tremendous values and should be sought.

Telecom Argentina's P/S of 0.63 based on trailing 12 month sales, is below 0.75 which is considered quite attractive. It passes this methodology's P/S ratio test with flying colors.

Less debt equals less risk according to this methodology. TEO's Debt/Equity of 1.51% is acceptable, thus passing the test.

The prospective company should have a low Price/Sales ratio. Non-cyclical(non-Smokestack) companies with Price/Sales ratios below .75 are tremendous values and should be sought.

This methodology looks for companies that have an inflation adjusted EPS growth rate greater than 15%. TEO's inflation adjusted EPS growth rate of 27.46% passes the test.

This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses. This is based on the premise that companies without cash will soon be out of business. TEO's free cash per share of 0.61 passes this criterion.

This methodology looks for companies that have an average net profit margin of 5% or greater over a three year period. TEO, whose three year net profit margin averages 12.75%, passes this evaluation.