4-Star Stocks Poised to Pop: Chevron
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 (NYS: CVX) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Chevron's and see what CAPS investors are saying about the stock right now.
Chevron facts
Headquarters (Founded) | San Ramon, Calif. (1879) |
Market Cap | $206.3 billion |
Industry | Integrated oil and gas |
Trailing-12-Month Revenue | $216.9 billion |
Management | Chairman/CEO John Watson CFO Patricia Yarrington |
Return on Capital (Average, Past 3 Years) | 15% |
Cash/Debt | $16.9 billion / $11.6 billion |
Dividend Yield | 3% |
Competitors | BP (NYS: BP) ConocoPhillips (NYS: COP) ExxonMobil (NYS: XOM) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 3,827 members who have rated Chevron believe the stock will outperform the S&P 500 going forward. These bulls include mtownsend079 and Seansonfire.
Just last month, mtownsend079 tapped Chevron as solid bargain opportunity: "Undervalue company with great exposure to the price of oil which is going to increase this next year. Nice dividend to hedge your bet too!"
Chevron even sports a three-year average net income margin of 9.6%. That's higher than that of rivals BP (3.3%) and Exxon (9%), let alone Conoco's average margin of negative 1.3%.
CAPS member Seansonfire elaborates on the bull case:
Chevron (CVX) is by far the top play in the oil majors space over the next 5 years. It has several major projects in the pipeline including both Natural Gas and Oil projects. It is also the largest Oil Driller by Rig count in the Gulf of Mexico, which I put a premium on especially right now due to the middle east crissis that keeps spreading.
Chevron corporate strategy over the last 5 years has been to move its assets upstream into Exploration and Production and away from downstream activities including refining. I think this strategy will serve them well as the price of oil will continue to creep up which will benefit those that have already put in the capital costs now at a lower real dollar value then in the future.
What do you think about Chevron, 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!
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of 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 Fool's disclosure policy always gets a perfect score.
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