Why Core Labs Is Poised to Keep Soaring

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas service provider Core Laboratories (NYSE: CLB  ) has earned a coveted five-star ranking.

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

Core Labs facts

Headquarters (founded)

Amsterdam (1936)

Market Cap

$6.2 billion

Industry

Oil and gas equipment and services

Trailing-12-Month Revenue

$981.1 million

Management

Chairman/CEO David Demshur

CFO Richard Bergmark

Return on Capital (average, past 3 years)

37.4%

Cash/Debt

$19.2 million / $234.0 million

Dividend Yield

0.8%

Competitors

Baker Hughes International

Halliburton

Schlumberger

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

On CAPS, 98% of the 618 members who have rated Core Labs believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, NoblyNaive, tapped Core Labs as a particularly attractive momentum play:

Good revenue growth. Good earnings growth. Rising energy prices are expected to fuel (pun intended) expanded lab work. [Core Labs] is positioned well for future revenue growth, with a structure which should convert that revenue growth to an even higher percentage earnings growth. Lackluster P/E indicates that a lot of people already know this and I am late to the party. Still, the Renko chart shows no sign of this upward march in price abating. I guess it is better late than never.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Core Labs may not be your top choice.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 05, 2013, at 2:43 PM, spokanimal wrote:

    Core Labs is an "oil service" stock selling at a very high P/E ratio relative to it's peers.

    That wouldn't be a problem if it's forward PEG ratio weren't so astronomical.

    This is NOT a value investment. With Core Labs, one has to hope that running on fumes will prolong it's momentum...

    ... especially now that the "bigs" are looking to capture some of Core's margins by competing in their space.

    S

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