Why HollyFrontier 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, independent oil refiner HollyFrontier has earned a coveted five-star ranking.
With that in mind, let's take a closer look at HollyFrontier and see what CAPS investors are saying about the stock right now.
HollyFrontier facts
Headquarters (founded) | Dallas (1947) |
Market Cap | $8.8 billion |
Industry | Oil and gas refining and marketing |
Trailing-12-Month Revenue | $19.9 billion |
Management | Chairman/CEO Michael Jennings CFO Douglas Aron |
Return on Equity (average, past 3 years) | 27.6% |
Cash/Debt | $2.5 billion / $1.3 billion |
Dividend Yield | 2.9% |
Competitors | ExxonMobil Valero Energy Western Refining |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 863 members who have rated HollyFrontier believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, All-Star joryko, tapped HollyFrontier as a particularly tempting bargain opportunity:
Another good old fashioned Ben Graham screener pick here.
Maintains a 2.8% dividend, Price to Cash Flow of only 4, Price to Book of 1.4, and has twice as much cash as debt -- $2.5B versus $1.3B.
Even using its 2014 EPS outlook, which is only $4.75, HollyFrontier Corp.'s Graham Number still sits at $57.50, a nice 30% premium to its current price.
Admittedly, I know very little about the company, just that it meets Graham's requirements for a good Defensive stock selection, so I will roll the dice and see what happens.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, HollyFrontier may not be your top choice.
After all, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.
The article Why HollyFrontier Is Poised to Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Western Refining. 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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