5-Star Stocks Poised to Pop: Chesapeake Energy

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free community, Chesapeake Energy (NYSE: CHK) has earned a coveted five-star rating. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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 Energy facts

Headquarters (Founded) Oklahoma City, Oklahoma (1989)

Market Cap

$36.8 billion

Industry

Independent oil and gas

TTM Revenue

$7.83 billion

Management

CEO Aubrey McClendon (since 1989)

CFO Marcus Rowland (since 1993)

Return on Equity (average past three years)

18.2%

CAPS players bullish on CHK also bullish on

Transocean (NYSE: RIG)

Johnson & Johnson (NYSE: JNJ)

Apple (Nasdaq: AAPL)

CAPS players bearish on CHK also bearish on

ConocoPhillips (NYSE: COP)

First Solar (Nasdaq: FSLR)

Nuance Communications (Nasdaq: NUAN)

 

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 1,896 of 1,909 (99%) of the All-Star players who have rated Chesapeake believe the stock will outperform the S&P 500. These All-Star bulls include falcon2382 and Cuchulainn1, both of whom are ranked in the top 2% of our community.

In mid-March, falcon2382 wrote, "Given the turmoil in the energy market, the increased pressure to find alternatives to oil, Chesapeake Energy is poised to continue growing at the same or faster rate over the next ten years as it has the past 5."

Later on that month, Cuchulainn1 expanded on that bullish logic, sharing details on what makes Chesapeake Energy such a natural selection:

The next President will likely pass some sort of carbon emissions tax. ... The USA has as much natgas as we have coal. With the new carbon taxes coal will become more expensive making the clean burning NatGas SEXY. (especially in electricity production). Green energy … still needs more work, nuclear takes 10-15 years to build ... and coal is about to become a lot more expensive. With high oil prices it makes (sense) to produce natgas domestically instead of shipping it halfway around the world.

What do you think about Chesapeake, or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Want to make money in up, down, and rollercoaster markets? Find out how. Claim your private invitation to a breakthrough new service from Motley Fool Co-founder David Gardner and team. Simply enter your email below.

Chesapeake Energy is a Motley Fool Inside Value pick, Johnson & Johnson is an Income Investor recommendation, Nuance Communications has been singled out by Motley Fool Hidden Gems, and Apple is a Stock Advisor pick.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

Chesapeake Energy Corp

CHK Down! $22.40 -4.10 (-15.47%) 4:04 PM
CAPS Rating:
5285 Outperforms
133 Underperforms
Rate This Stock

Major Indices

S&P 500996.23 -5.74%
DJIA9,447.11 -5.11%
NASD1,754.88 -5.80%
Updated: 4:30:19 PM
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