5-Star Stocks Poised to Pop: Chesapeake Energy
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas producer Chesapeake Energy (NYS: CHK) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Chesapeake's business and see what CAPS investors are saying about the stock right now.
Chesapeake facts
Headquarters (founded) | Oklahoma City (1989) |
Market Cap | $13.7 billion |
Industry | Oil and gas exploration and production |
Trailing-12-Month Revenue | $11.6 billion |
Management | Co-Founder/Chairman/CEO Aubrey McClendon |
Return on Equity (average, past 3 years) | (5.3%) |
Cash/Debt | $351.0 million / $10.9 billion |
Dividend Yield | 1.6% |
Competitors | Anadarko Petroleum |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 7,685 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward.
Earlier this year, one of those Fools, aleax, tapped the stock as a tempting turnaround opportunity:
[Natural gas] price can't keep going lower forever, plus, [Chesapeake's] controversial CEO has been executing quite well on the 25/25 plan to realize cash from assets in joint ventures and thus reduce debt -- the market will eventually notice. Timing the market is especially impossible here, but, in 5 years [Chesapeake] will be a multi-bagger from today's [$20-ish share price].
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. Of course, despite its five-star rating, Chesapeake may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
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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