5-Star Stocks Poised to Pop: Chesapeake Energy
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas giant Chesapeake Energy (NYS: CHK) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Chesapeake's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Oklahoma City (1989)|
|Market Cap||$18.9 billion|
|Industry||Oil and gas exploration and production|
|Trailing-12-Month Revenue||$9.5 billion|
|Management||Co-Founder/Chairman/CEO Aubrey McClendon|
CFO Domenic Dell'Osso
|Return on Equity (Average, Past 3 Years)||(5.3%)|
|Cash / Debt||$109 million / $10.1 billion|
|Competitors||Anadarko Petroleum (NYS: APC) |
BP (NYS: BP)
EOG Resources (NYS: EOG)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 7,437 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward. These bulls include All-Star jahartmu, who is ranked in the top 10% of our community, and NHWeston.
Earlier this month, jahartmu touched tapped Chesapeake as a natural selection: "The Middle East isn't likely to become a utopia overnight, Russia is no friend, and drilling for our own oil is apparently out of the question ... these factors make me bullish on the future of natural gas, even if I'm late to the bandwagon!"
Currently, Chesapeake even sports a cheapish price-to-cash flow ratio of 4.9. That represents a discount to rivals like Anadarko (6.1), BP (13.2), and EOG (6.5).
CAPS member NHWeston just can't deny the Chesapeake bull case:
I've said many bad things about this company in the past -- and I meant every stinkkin one of them! I also share the nagging feeling that there is something about the fracking process that's gonna go BOOM, you know, discover that it causes flames to come out of water spigots or something. Yet, of late, almost in spite of itself and its [swashbuckling] cartographer CEO, it is finding gas, cutting deals, and making money. So I'll go with the flow -- but I'm not taking my life-jacket off!
What do you think about Chesapeake, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Chesapeake?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chesapeake. 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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