Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas giant Chevron has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Chevron and see what CAPS investors are saying about the stock right now.
San Ramon, Calif. (1879)
Integrated oil and gas
Chairman/CEO John Watson
CFO Patricia Yarrington
Return on Equity (average, past 3 years)
$21.9 billion / $12.2 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the4,270 members who have rated Chevron believe the stock will outperform the S&P 500 going forward.
Even if the Lago Agrio judgment ends up wiping out the full $19 billion of book value, it's still undervalued with a margin of safety if it can maintain a similar cash flow for the next few years. There are enough variables, though, such as difficulty in replacing reserves, the potential for a substantial drop in oil demand due to new supply and less than expected consumption growth in India or China, to warrant a very watchful eye over the next few years.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Chevron Is Too Cheap to Pass up originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron. 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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