4-Star Stocks Poised to Pop: Frontline

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil tanker operator Frontline (NYSE: FRO) has earned a respected four-star ranking.

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

Frontline facts

Headquarters (Founded)

Hamilton, Bermuda (1948)

Market Cap

$1.92 billion

Industry

Shipping

Trailing-12-Month Revenue

$1.67 billion

Management

CEO John Fredriksen (since 1997)

CFO Inger Klemp (since 2006)

Return on Capital (Average, Past 3 Years)

8.5%

Cash/Debt

$120.6 million / $2.97 billion

Dividend Yield

4%

Competitors

Teekay (NYSE: TK)

General Maritime (NYSE: GMR)

CAPS Members Bullish on FRO Also Bullish on

Transocean (NYSE: RIG)

Apple (Nasdaq: AAPL)

CAPS Members Bearish on FRO Also Bearish on

AIG (NYSE: AIG)

American Express (NYSE: AXP)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,639 members who have rated Frontline believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Ak66, who is ranked in the top 15% of our community, and lucasjkr.

Late last week, Ak66 highlighted Frontline as a particularly slick opportunity: "This is a speculative play on future volumes and prices of oil. I think it will be very volatile in the next several months but should be a great longer-term play."

In an earlier pitch, lucasjkr expands on why the stock shouldn't tank for too long:

It may not do well in the short term, as there are a glut of tankers. But as more single hulls are taken out of circulation, and more double hull orders are cancelled, demand for its ships should pick up. Past that, they are VERY friendly towards the owners of the company, and are one of the largest oil shippers in the world, with a long history, so it's not as if they don't know how to manage during leaner times.

What do you think about Frontline, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor recommendation. American Express is an Inside Value pick. The Fool's disclosure policy always gets a perfect score.

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AXP $40.93 Down -0.21 -0.51%
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