4-Star Stocks Poised to Pop: Apache
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 respected four-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.
|Headquarters (Founded)||Houston (1954)|
|Market Cap||$36.1 billion|
|Industry||Oil and gas exploration and production|
|Trailing-12-Month Revenue||$15.9 billion|
|Management||Chairman/CEO G. Steven Farris|
CFO Thomas Chambers
|Return on Equity (Average, Past 3 Years)||3.2%|
|Cash/Debt||$586 million / $7.2 billion|
|Competitors||Anadarko Petroleum (NYS: APC) |
BP (NYS: BP)
ExxonMobil (NYS: XOM)
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,988 members who have rated Apache believe the stock will outperform the S&P 500 going forward. These bulls include All-Star dspl4Js, who is ranked in the top 5% of our community, and Seansonfire.
Earlier this fall, dspl4Js tapped Apache as a solid bargain opportunity: "Punished by global recession fears. ... Highly profitable, well managed, growth prospect."
In fact, Apache currently sports a particularly paltry price-to-cash flow of 4.1. That represents a discount to rivals like Anadarko (6.6), BP (7.8), and Exxon (6.9).
CAPS member Seansonfire lists several more reasons to look into Apache:
1. Recent Acquisitions and Capex Spend will drive increased production levels in 2013 and 2014
a. BP -- Western Egypt and US Permian Basin, Mariner Energy US Gulf of Mexico Deepwater and Shelf, ExxonMobil Beryl North Sea, [Devon Energy] US Gulf of Mexico Shelf
b. Acquired assets are near existing operational assets which allows for quick and efficient asset integration
2. Focus on diverse assets by geography, geologic risk, and hydrocarbon mix ...
3. Management is efficient: Been successful in the past at integrating past acquisitions
4. Relative Valuation within Industry
What do you think about Apache, 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!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Devon. 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.