Why Chevron Is Too Cheap to Pass up

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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 gas giant Chevron has earned a coveted five-star ranking.

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

Chevronfacts

Headquarters (founded)

San Ramon, Calif. (1879)

Market Cap

$232.4 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$222.6 billion

Management

Chairman/CEO John Watson

CFO Patricia Yarrington

Return on Equity (average, past 3 years)

21.1%

Cash/Debt

$21.9 billion / $12.2 billion

Dividend Yield

3.1%

Competitors

BP

ExxonMobil

ConocoPhillips


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

On CAPS, 96% of the4,270 members who have rated Chevron believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those bulls, rtc76, succinctly summed up the Chevron bull case for our community:

Even if the Lago Agrio judgment ends up wiping out the full $19 billion of book value, it's still undervalued with a margin of safety if it can maintain a similar cash flow for the next few years. There are enough variables, though, such as difficulty in replacing reserves, the potential for a substantial drop in oil demand due to new supply and less than expected consumption growth in India or China, to warrant a very watchful eye over the next few years.

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

 Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Chevron Is Too Cheap to Pass up originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron. 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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