Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas and oil producer Apache (NYS: APA) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Apache's business and see what CAPS investors are saying about the stock right now.
Oil and gas exploration and production
Chairman/CEO G. Steven Farris
CFO Thomas Chambers
Return on Capital (Average, Past 3 Years)
$1.1 billion / $7.9 billion
Anadarko Petroleum (NYS: APC)
BP (NYS: BP)
ExxonMobil (NYS: XOM)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 1,922 members who have rated Apache believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars reddingrunner and JTmoneys, both of whom are ranked in the top 15% of our community.
Earlier this month, reddingrunner tapped Apache as a relatively stable selection: "Besides its core business and stats, I'm looking at this from the LNG standpoint. It's a much safer play for LNG (liquefied natural gas) than [Cheniere Energy] which is building a liquification plant."
Currently, Apache even sports a cheapish price-to-cash flow of 4.8. That represents a discount to rivals like Anadarko (6.5), BP (13.2), and Exxon (6.6).
CAPS member JTmoneys elaborates on the bull case:
Apache has there hands in everything. They have revolutionized the Oil & gas industry by the angled drilling technology and with the huge $7 bn purchase from BP ... Apache is showing that they plan on growing even more. They are a very diverse company that is willing to explore new avenues throughout the world. They have a big bank account ... The company is good at what they do and doing it smart.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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