5-Star Stocks Poised to Pop: PAA Natural Gas Storage

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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, natural-gas storage facility operator PAA Natural Gas Storage (NYS: PNG) has earned a coveted five-star ranking.

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

PAA facts

HeadquartersHouston
Market Cap$1.3 billion
IndustryOil and gas storage and transportation
Trailing-12-Month Revenue$401.3 million
ManagementChairman/CEO Greg Armstrong
CFO Al Swanson
Trailing-12-Month Return on Equity5.4%
Cash/Debt$519 thousand / $516.7 million
Dividend Yield7.8%
CompetitorsAGL Resources
Enterprise Products Partners
Sempra Energy

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

On CAPS, 95% of the 57 members who have rated PAA believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star TMFDeej, touched on the trends working in PAA's favor:

With the huge glut of natural gas storage facilities are filling up fast. Theoretically a lack of spare storage capacity means an increase in prices. Admittedly I am still in the process of learning about the natural gas storage sub-sector, but if it works the way it seems like it should companies that store gas will benefit as the glut of the stuff continues to grow as the year progresses. Heck even if nat gas prices begin to rise that just means that companies will produce more of it ... there's no shortage out there. Either way it seems like nat gas storage companies win. Add in a huge dividend and bam we should have a winner.

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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 Products. 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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