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4-Star Stocks Poised to Pop: Buckeye Partners

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, petroleum-pipeline operator Buckeye Partners L.P. (NYSE: BPL  ) has earned a respected four-star ranking.

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

Buckeye facts

Headquarters (Founded) Houston (1986)
Market Cap $6 billion
Industry Oil and gas storage transportation
Trailing-12-Month Revenue $3.67 billion
Management

Chairman/CEO Forrest Wylie

CFO Keith St. Clair

Return on Equity (Average, Past 3 Years) 13.1%
Cash/Debt $66.4 million / $2.6 billion
Dividend Yield 6.2%

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

On CAPS, 92% of the 205 members who have rated Buckeye believe the stock will outperform the S&P 500 going forward. These bulls include talnaglis and foolishStocker.

About a month ago, talnaglis tapped Buckeye as a solid income opportunity: "Latest contacts with BP should boost the stock which has a very nice distribution. Considering growth and [yield], BPL is a bargain. you dont miss this pipeline of cash :)."

Over the past five years, in fact, Buckeye has grown its top line at a brisk rate of 54% annually. That's much faster than industry peers like Enterprise Products Partners (NYSE: EPD  ) (22%) and TransCanada (NYSE: TRP  ) (6%), let alone Kinder Morgan Energy Partners' (NYSE: KMP  ) annual decline of 4.9%.

CAPS member foolishStocker elaborates on Buckeye as a particularly timely bargain:

Dont let the current down trending stock price fool you , this stock is worth 2x more than its current valuation. Great solid dividend, great valuation comparing to its peers. I think that this stock is currently 'hidden' from [Wall Street] radar ... but looking at increasing volumes I assume it wont be 'hidden' for long.

What do you think about Buckeye, 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. 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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DocumentId: 1515435, ~/Articles/ArticleHandler.aspx, 5/26/2012 12:19:37 PM

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Related Tickers

5/25/2012 4:00 PM
BPL $47.84 Down -0.05 -0.10%
Buckeye Partners,… CAPS Rating: *****
TRP $41.22 Up +0.12 +0.29%
TransCanada CAPS Rating: *****
KMP $79.67 Up +0.29 +0.37%
Kinder Morgan Ener… CAPS Rating: *****
EPD $49.44 Down -0.07 -0.14%
Enterprise Product… CAPS Rating: *****

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