4-Star Stocks Poised to Pop: Encana

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian oil and gas giant Encana (NYS: ECA) has earned a respected four-star ranking.

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

Encana facts

Headquarters (Founded)

Calgary, Canada (1971)

Market Cap

$17.6 billion

Industry

Oil and gas exploration and production

Trailing-12-MonthRevenue

$7.5 billion

Management

President/CEO Randall Eresman

CFO Sherri Brillon

Return on Equity (Average, Past 3 Years)

13.6%

Cash/Debt

$870 million / $8.5 billion

Dividend Yield

3.4%

Competitors

Apache (NYS: APA)

Chesapeake Energy (NYS: CHK)

Talisman Energy (NYS: TLM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,075 members who have rated Encana believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Chemdawg, who is ranked in the top 5% of our community, and Snagon.

A few months ago, Chemdawg tapped Encana as a natural selection: "[W]hen the world wakes up to its enormous role in the future you would be wise to be invested in natural gas. [T]his is one of the best in the business ... get in before the world does."

Currenctly, Encana even sports a solid dividend yield of 3.4%. That's higher than that of listed competitors like Apache (0.6%), Chesapeake (1.1%), and Talisman (1.9%).

CAPS member Snagon expands on the Encana outperform argument:

Natural gas is going to be huge, prices are going to be substantially higher in the coming years and this company is a safe way to bet on a pure natural gas play. It pays a very nice dividend while you wait for higher natural gas prices and much higher trading range!

What do you think about Encana, 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!

Interested in another easy way to trackEncana?Add it to your watchlist.

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 Chesapeake. 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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