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4-Star Stocks Poised to Pop: ConocoPhillips

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas giant ConocoPhillips (NYSE: COP  ) has earned a respected four-star ranking.

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

Conoco facts

Headquarters (Founded) Houston (1917)
Market Cap $108.07 billion
Industry Integrated oil and gas
Trailing-12-Month Revenue $175.75 billion
Management Chairman/CEO James Mulva
CFO Jeff Sheets
Return on Equity (Average, Past 3 Years) 0.6%
Cash/Debt $10.86 billion / $28.78 billion
Dividend Yield 3.1%
Competitors BP (NYSE: BP  )
Chevron (NYSE: CVX  )
ExxonMobil (NYSE: XOM  )

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

On CAPS, 97% of the 5,378 members who have rated Conoco believe the stock will outperform the S&P 500 going forward. These bulls include spoonieluv and Veritas1010.

Just last month, spoonieluv touched on several of Conoco's positives: "Smallest cap of the giant-cap oil companies. Pretty far off its all-time high. Crazy low P/E with an awesome dividend. Oil play for 2011 and beyond."

Conoco's cheapish valuation continues to support its four-star CAPS status. Currently, Conoco even trades at a wide PEG (0.6) discount to supermajor oil stocks BP (1.7), Exxon (1.1), and Total (NYSE: TOT  ) (3.1), as well as Petrobras (NYSE: PBR  ) (5.2) and PetroChina (NYSE: PTR  ) (1.9).

CAPS member Veritas1010 expands on the outperform case:

[Conoco] is an integrated energy firm with strong downstream investment. Sound management, it represents an investment hedge with the inevitable growth of the world economy and a world awash in dollars and euros. [R]eap nearly 4% in dividends while awaiting future growth. Additionally, one has to like their gas holdings, traditional not shale -- doesn't have the ecological risk associated with this form of gas extraction in countries such as the United States.

What do you think about Conoco, 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!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chevron, Total, and Petrobras are all Motley Fool Income Investor picks. The Fool owns shares of Exxon and Petrobras. 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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Related Tickers

5/25/2012 4:03 PM
PTR $127.00 Up +0.15 +0.12%
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