5-Star Stocks Poised to Pop: VAALCO Energy

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas small cap VAALCO Energy (NYS: EGY) has earned a coveted five-star ranking.

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

VAALCO facts

Headquarters (Founded)

Houston (1984)

Market Cap

$461.6 million

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$209.0 million

Management

Chairman/CEO Robert Gerry III (since 1997)
CFO Gregory Hullinger (since 2008)

Return on Equity (Average, Past 3 Years)

17.3%

Cash/Debt

$140.3 million / $0

Competitors

Harvest Natural Resources
Hess
Pioneer Natural Resources


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,566 members who have rated VAALCO believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, TheAccidentOf85, tapped the stock as a solid bargain opportunity:

[P]henomenal earnings BEFORE taxes. ... They produced less in [Gabon, Africa] this year compared to last year because the wells are maturing. This stock is cheap and I think it stays cheap for a while. Growth needs to happen outside Gabon for this stock to take off. Buy the dips and sell the rips on this one for a bit. Be sure to read the financials when there is movement in this stock to see if there is growth potential, or if their asset in Gabon is dwindling.

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 a strong five-star rating, VAALCO may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so access it now.

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 contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Harvest Natural. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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