Why CVR Energy Is Poised to Bounce Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, petroleum refiner CVR Energy has earned a respected four-star ranking.
With that in mind, let's take a closer look at CVR and see what CAPS investors are saying about the stock right now.
CVR facts
Headquarters | Sugar Land, Texas |
Market Cap | $3.9 billion |
Industry | Oil and gas refining and marketing |
Trailing-12-Month Revenue | $9.0 billion |
Management | CEO John Lipinski CFO Susan Ball |
Return on Equity (average, past three years) | 25.7% |
Cash/Debt | $1.0 billion / $679.6 million |
Dividend Yield | 6.7% |
Competitors | BP ConocoPhillips Valero Energy |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 420 members who have rated CVR believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star Staka, tapped CVR as a particularly attractive income opportunity:
Positive:-Has been [hit hard] lately together with other US refiners due to shrinking Brent-WTI spreads and crack spreads. But has one of the lowest cost profiles and a diversification into fertilizers. Both help to stay hugely profitable.-Price has come down from a recent overheating to the 200 day moving average.-Dividend is high and not in immediate danger.-Dividend stocks got punished lately due to increasing US government bond yields. Seems to be irrational for this company. Negative:-Further development of spreads is uncertain. Negative developments can lead to earnings reductions and dividend cuts.
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The article Why CVR Energy Is Poised to Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.
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