Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas company XTO Energy (NYSE: XTO) has earned a coveted five-star ranking. Our data has showed 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 XTO Energy's business, and see what CAPS investors are saying about the stock right now.
XTO Energy facts
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Headquarters (Founded)
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Fort Worth, Texas (1985)
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Market Cap
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$28.30 billion
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Industry
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Independent Oil and Gas
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TTM Revenue
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$6.62 billion
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Management
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Co-founder/CEO Bob Simpson
CFO Louis Baldwin
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Return on Capital (average last three years)
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18.33%
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Competitors
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BP (NYSE: BP)
Exxon Mobil (NYSE: XOM)
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CAPS members bullish on XTO also bullish on
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Chesapeake Energy (NYSE: CHK)
Transocean (NYSE: RIG)
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CAPS members bearish on XTO also bearish on
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Cimarex Energy (NYSE: XEC)
Devon Energy (NYSE: DVN)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 438 of the 449 All-Star members who have rated XTO Energy -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include DemonDoug and BrianRuth, both of whom are ranked in the top 1% of our community.
Two months ago, DemonDoug expressed bewilderment over the bargain opportunity:
XTO has 33% yoy per share earnings, and is down over 8%? Meanwhile airlines and banks are bleeding money left and right and they rally? Energy prices are not going to appreciably fall and will continue on their climb to 200/bbl for oil by 2010 and nat gas is headed towards 15 per unit.
A pitch from BrianRuth just two days ago shared that contrarian spirit, focusing on the stock's bounce-back possibilities:
It's in a sector I like (oil & gas) at a price I like (13 P/E). I think oil has been brought down without looking at the supply side of the equation, and if/when the wells start drying up the wildcatters like XTO will benefit.
Admittedly, this is almost a half oil half nat gas play, but I consider both to have much better prospects than the market as a whole.
What do you think about XTO Energy, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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