4-Star Stocks Poised to Pop: TransGlobe 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 explorer TransGlobe Energy (NAS: TGA) has earned a respected four-star ranking.

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

TransGlobe facts

Headquarters (founded)

Calgary, Canada (1968)

Market Cap

$737.0 million

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$272.1 million

Management

CEO Ross Clarkson (since December 1996)
CFO Randy Neely (since May 2012)

Return on Equity (average, past 3 years)

16.3%

Cash/Debt

$127.3 million / $163.7 million

Competitors

Dana Petroleum
Hunt Consolidated
Regal Petroleum


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

On CAPS, 96% of the 523 members who have rated TransGlobe believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, condor4956, nicely summed up the bull case for our community:

This is a lean, mean, oil-producing machine. ... They keep a low profile, in the Arab world -- as they should; their growth comes at a very reasonable price, i.e., they use their money wisely partnering with other firms to get a foothold in new areas in Egypt. ... Their growth can continue past four years if they continue to attain new bid awards at a reasonable price. Their 2012 average [barrels of oil per day] will be [approximately] 22,000 bopd, as they always under-announce and over-perform. Lower oil prices are factored into their growth estimates so this is a non-factor with prices above $75.00 per bbl.

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, TransGlobe 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. 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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Originally published