5-Star Stocks Poised to Pop: Enterprise Products

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas transporter Enterprise Products Partners (NYS: EPD) has earned a coveted five-star ranking.

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

Enterprise facts

Headquarters (Founded)Houston (1968)
Market Cap$35.8 billion
IndustryOil and gas storage and transportation
Trailing-12-Month Revenue$39.05 billion
Management

CEO Michael Creel (since 2007)

CFO Randall Fowler (since 2007)

Return on Equity (Average, Past 3 Years)15.4%
Cash/Debt$160.2 million / $14.4 billion
Dividend Yield5.8%
CompetitorsSpectra Energy (NYS: SE)
Williams Companies (NYS: WMB)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,173 members who have rated Enterprise believe the stock will outperform the S&P 500 going forward. These bulls include Classof1964 and MatyaNoBaaka.

A few months ago, Classof1964 wrote that Enterprise "will outperform because of its scale, high entry costs into the industry, the demand for energy in the US economy, and the inability of the US to conserve energy."

Currently, Enterprise even boasts an attractive dividend yield of 5.8%. That's higher than industry peers like Spectra (4%), Williams (2.9%), and Enbridge (NYS: ENB) (3.1%).

CAPS member MatyaNoBaaka elaborates on the Enterprise bull case:

A gas and oil pipeline company in mid-America. It earns based on fees avoiding the commodity spikes and troughs. And as one of the main suppliers of WTI to refineries the fees keep coming. The partnership distribution is what first attracted me to [Teppco Partners] which was bought out by EPD a couple of years ago.

What do you think about Enterprise, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackEnterprise?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Enterprise. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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