Why Ultra Petroleum Is Ready to Rebound

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 Ultra Petroleum has earned a respected four-star ranking.

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

Ultra Petroleum facts

Headquarters (founded)

Houston, Texas (1979)

Market Cap

$2.6 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$863.6 million

Management

Chairman/CEO Michael Watford (since 1999)

CFO Marshal Smith (since 2005)

Return on Capital (average, past 3 years)

17%

Cash/Debt

$59.2 million/$2.2 billion

Competitors

Cabot Oil & Gas

EOG Resources

XTO Energy


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

On CAPS, 97% of the 1,568 members who have rated Ultra Petroleum believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star RSue, tapped Ultra Petroleum as a particularly timely bargain opportunity:

Now is a worthwhile time to buy shares of this out-of-favor best-of-breed natural gas exploration and production company while the cost of natural gas is still in the doldrums. The share price of [Ultra] just hit a 5 year low, making this a good time to scoop some up on the cheap in order to be well-positioned in advance of an eventual [natural gas] recovery.

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Ultra Petroleum may not be your top choice.

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The article Why Ultra Petroleum Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ultra Petroleum. It has the following options: Long Jan 2014 $30 Calls on Ultra Petroleum, Long Jan 2014 $40 Calls on Ultra Petroleum, and Long Jan 2014 $50 Calls on Ultra Petroleum. 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 Motley Fool has a disclosure policy.

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