Why Chicago Bridge and Iron N.V. Stock Skyrocketed 250%, and Can It Continue?

The stock of Chicago Bridge and Iron (NYSE: CBI  ) is up 71% this year compared to a 27% return for the S&P 500. Looking at the long term, shareholders have drastically outperformed the market over the past five years with a 708% return compared to 120% for the S&P 500. So just what caused this incredible run and is it about to run out of steam?

A natural gas-powered rally for the ages
Since 2010, the company has seen exceptionally high demand for its products and services with revenues growing 25% in 2011, 21% in 2012, and 85% over the last 12 months. These gains have been driven by demand for natural gas projects across the world and further boosted by the acquisition of Shaw. The future for Chicago Bridge and Iron investors is largely tied to continued demand for energy, but how can investors make sure this demand is sustainable?

In the video below Motley Fool analyst Blake Bos goes over the cause of Chicago Bridge and Iron's recent rally, and gives investors the key areas they'll need to watch to make sure this rally can continue. 

Chicago Bridge and Iron's rally may be close to over, but these look poised to pop
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

 


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2773602, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:35:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement