Telecom Italia S.p.A. (ADR) (TI), Eni SpA (ADR) (E): You Should Look at Italy Right Now

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Eni SpA (ADR) (NYSE:E)’s huge gas discoveries in Mozambique and cost-cutting plans make it a good investment case taking into account the share’s market price. Eni trades at 8.5 times P/E, 1 time the company’s book value and pays a 6.9% cash dividend yield while planning a $4 billion share buyback during the period 2014-2016.

Foolish bottom line

The three stocks named above are hugely different not only because they operate in different spaces within the Italian economy but also because they represent different risks. Eni SpA (ADR) (NYSE:E) is, by far, the safest bet and the one I would recommend without any doubt. Meanwhile, Intensa Sanpaolo is a good play given its price and the bank’s leverage to the performance of the Italian economy. Telecom Italia S.p.A. (ADR) (NYSE:TI) is a great idea if you can bear a huge amount of price volatility. The stock most definitely looks cheap, but cheap can always get cheaper. You should always remember: “Price is what you pay and value is what you get.” Italy looks inexpensive. It’s time to start thinking of going long.

Federico Zaldua has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article You Should Look at Italy Right Now originally appeared on Fool.com.

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