5-Star Stocks Poised to Pop: Apache
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas and oil producer Apache (NYS: APA) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Apache's business and see what CAPS investors are saying about the stock right now.
Apache facts
Headquarters (founded) | Houston (1954) |
Market Cap | $32.7 billion |
Industry | Oil and gas exploration and production |
Trailing-12-Month Revenue | $17.3 billion |
Management | Chairman/CEO G. Steven Farris |
Return on Equity (average, past 3 years) | 15.3% |
Cash/Debt | $245.0 million / $7.9 billion |
Dividend Yield | 0.8% |
Competitors | Anadarko Petroleum |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 2,109 members who have rated Apache believe the stock will outperform the S&P 500 going forward.
Just last week, one of those bulls, ennui, offered a balanced take on the opportunity:
Domestic oil production has been rising, and [Apache] is going to lead the charge. With oil currently well off its highs, and with all kinds of nasty things happening in the [M]iddle [E]ast, it is easy to imagine any number of scenarios that will make domestic oil producers much more valuable than currently. ...
The one worry I have about [Apache] -- about 25% of current production is in Egypt, which is in a transition period right now. Transition to what? Democracy. Sounds good -- but we will have to wait to see how that plays out.
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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Exxon. 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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