Saturday, May 25, 2013

Why DIRECTV Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital television entertainment company DIRECTV (NASDAQ: DTV  ) has earned a respected four-star ranking.  

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

DIRECTV facts

 

 

Headquarters (founded)

El Segundo, Calif. (1990)

Market Cap

$36.8 billion

Industry

Cable and satellite

Trailing-12-Month Revenue

$30.3 billion

Management

Chairman/CEO Michael White

CFO Patrick Doyle

Return on Capital (average, past 3 years)

21.3%

Cash / Debt

$1.7 billion / $18.4 billion

Competitors

Comcast

Dish Network 

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

On CAPS, 91% of the 860 members who have rated DIRECTV believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star vitrified, succinctly summed up the DIRECTV bull case for our community:

1) DTV is very successful in Latin America, with a long growth runway and potential synergies with bundled broadband Internet and satellite TV. Note that I would never buy it based on the US business.

2) I have never seen buybacks at the rate DTV has pursued since 2004 (thus far, it seemingly has paid off).

3) Todd Combs and Ted Weschler at [Berkshire Hathaway] both love it; and Buffett is shoveling more and more cash into their portfolios.  

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, DIRECTV may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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