Why Chesapeake Is Poised to Outperform

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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 giant has earned a respected four-star ranking.

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

Chesapeakefacts

 

 

Headquarters (founded)

Oklahoma City, Okla. (1989)

Market Cap

$14.2 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$13.3 billion

Management

Acting CEO/COO Steven Dixon

CFO Domenic Dell'Osso, Jr.

Return on Equity (average, past 3 years)

5%

Cash/Debt

$33.0 million/$13.6 billion

Dividend Yield

1.6%

Competitors

 

 


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

On CAPS, 97% of the 7,657 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, EducatedGuesser, succinctly summed up the Chesapeake bull case for our community:

Undervalued stock undergoing reorganization. Nat gas prices have dropped in the US, but they are due to start rising as transportation networks (pipelines, etc) are this fuel is becoming more efficient and creating new markets to sell this low cost fuel. International markets are showing demand.

In fact, energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

The article Why Chesapeake Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has the following options on Chesapeake Energy: long Jan. 2014 $20 calls, long Jan. 2014 $30 calls, and short Jan. 2014 $15 puts. 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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