5-Star Stocks Poised to Pop: Statoil
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Norwegian oil giant Statoil (NYS: STO) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Statoil's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Stavanger, Norway (1972)|
|Market Cap||$79.6 billion|
|Industry||Integrated oil and gas|
|Trailing-12-Month Revenue||$106.9 billion|
|Management||CEO Helge Lund (since August 2004)|
CFO Torgrim Reitan (since January 2011)
|Return on Equity (average, past 3 years)||16.8%|
|Cash/Debt||$16.6 billion / $20.8 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
Just last month, jdill23 tapped Statoil as a particularly timely opportunity: "made several key acquisitions lately ... P/E at a good level."
In fact, Statoil currently sports a cheapish P/E of 7.4. That represents a slight discount to other big oil plays such as ConocoPhillips (NYS: COP) (9.0), ExxonMobil (NYS: XOM) (9.7), and PetroChina (NYS: PTR) (9.8).
TMFAimeeD elaborates on the bull case:
Statoil has proved to be forward thinking, which is something I demand out of a long term investment. The company purchased U.S. shale oil and gas producer Brigham Exploration this year, targeting the American energy boom to add depth to its global operations.
For diversity, the company is engaged in a project with the Department of Energy to develop floating wind turbines off the coast of Maine. The company already has a prototype in operation off the coast of Norway.
Finally, closer to its traditional operations, Statoil also recently discovered one of the largest reserves in the North Sea, estimated to contain 900 million to 1.5 billion barrels of oil equivalent. I believe the future is bright for the Norwegian company.
What do you think about Statoil, 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. Motley Fool newsletter services have recommended buying shares of Statoil. 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.