4-Star Stocks Poised to Pop: Energy XXI

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 explorer Energy XXI (NAS: EXXI) has earned a respected four-star ranking.

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

Energy XXI facts

Headquarters (founded)

Hamilton, Bermuda (2005)

Market Cap

$2.3 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$1.2 billion

Management

Chairman/CEO John Schiller, Jr.
CFO David Griffin

Return on Equity (average, past 3 years)

11.2%

Cash/Debt

$91.7 million / $1.0 billion

Dividend Yield

1%

Competitors

Denbury Resources
Newfield Exploration
Petsec Energy


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

On CAPS, 94% of the 201 members who have rated Energy XXI believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, RSue, helped bring the opportunity to our community's attention:

This is a young technologically advanced and business-savvy domestic oil and gas exploration and production company that has a two-prong strategy offering potential game-changing upside profitability. This involves economically acquiring and exploiting old Gulf of Mexico on-shore and shallow-water ultra-deep shelf wells, as well as further exploring these legacy properties with advanced seismic technologies to find and bring-up vast amounts of additional oil and gas reserves still trapped in the wells. The wells are accessible by the ground unlike deep-water properties, and the blow-out preventers are above-ground. This allows for more safely and more economically drilling for these vast reserves -- providing the opportunity potentially large upside profitability.

If you want market-beating returns, 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 four-star rating, Energy XXI 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 click here to 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 contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Denbury. 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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