4-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 producer Chesapeake Energy (NYSE: CHK  ) has earned a respected four-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.

Chesapeake facts

Founded (founded) Oklahoma City (1989)
Market Cap $12.8 billion
Industry Oil and gas exploration and production
Trailing-12-Month Revenue $12.4 billion
Management Co-Founder/CEO Aubrey McClendon
CFO Domenic Dell'Osso
Return on Equity (average, past 3 years) 7.8%
Cash/Debt $438 million / $13.3 billion
Dividend Yield 1.7%
Competitors Anadarko Petroleum
BP

ConocoPhillips

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 7,799 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward.  

Just last month, one of those Fools, WealthLift, succinctly summed up the bull case for our community:

Chesapeake will rise in the intermediate term due to: (1) a successful monetization of its asset base, (2) a profitable switch to natural gas liquids production, and (3) an eventual rise in natural gas prices that are currently near a 10-year bottom (as of May 2012). Having Carl Icahn at the proverbial helm doesn't hurt either.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, Chesapeake may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Chesapeake. 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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