5-Star Stocks Poised to Pop: Linn 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 natural gas company Linn Energy (NAS: LINE) has earned a coveted five-star ranking.

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

Linn facts

Headquarters (founded)

Houston (2003)

Market Cap

$7.3 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$1.3 billion

Management

Chairman/CEO Mark Ellis
CFO Kolja Rockov

Return on Equity (average, past 3 years)

(2.9%)

Cash/Debt

$24.2 million / $4.9 billion

Dividend Yield

8%

Competitors

Anadarko Petroleum
Forest Oil
Pioneer Natural Resources


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

On CAPS, 98% of the 1,011 members who have rated Linn believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, jdavis4982, tapped Linn as a particularly stable income opportunity:

Linn Energy is 100% hedged through 2017 in natural gas. It is 100% hedged in oil production through 2015, and it is 94% hedged in 2016. With ... market news causing this industry to go up one minute down the next these are [guarantees] I can live with. ... [C]urrently has a [dividend yield] of 8%. [I]f your an income investor great dividend payer here!

If you want market-thumping 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 its five-star rating, Linn 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.

The article 5-Star Stocks Poised to Pop: Linn Energy originally appeared on Fool.com.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement