Recs

2

5-Star Stocks Poised to Pop: Devon Energy

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Based on the aggregated intelligence of 115,000 investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas giant Devon Energy (NYSE: DVN  ) has earned a coveted five-star ranking. 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 Devon's business and see what CAPS investors are saying about the stock right now.

Devon facts

Headquarters

Oklahoma City, Oklahoma (1971)

Market Cap

$30.24

Industry

Independent oil and gas

TTM Revenue

$14.48 billion

Management

Co-Founder/CEO J. Larry Nichols

CFO Danny Heatly

Return on Equity (average last three years)

15.4%

Competitors

BP (NYSE: BP  ) ,

ConocoPhillips (NYSE: COP  )

CAPS members bullish on DVN also bullish on

Chesapeake Energy (NYSE: CHK  ) ,

Transocean (NYSE: RIG  )

CAPS members bearish on DVN also bearish on

ExxonMobil (NYSE: XOM  ) ,

Chevron (NYSE: CVX  )

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

Over on CAPS, 249 of the 260 All-Star members who have rated Devon -- or 96% -- believe the stock will outperform the S&P 500. These All-Star bulls include saunafool and coltholt, both of whom are ranked in the top 5% of our community.

Last week, saunafool wrote that the "Oil boom isn't over. Natural gas is going to be a major part of our energy future, and it is like toothpaste--we just keep using it up."

In a pitch from two weeks ago, coltholt agreed, highlighting the stock's bargain-like qualities:

One of the most solid Independent O & G companies on the market. This stock has outperformed like crazy over the past few years and is available at a discount right now. DVN was at 70 when oil was down at $60 / barrel and is in even better position now. If oil drops to 60, this is probably priced about right, but if oil is anything above that, this stock is cheap. Imagine if oil went back to 140, this could be back up to $120 in no time. Seems like a safe bet in a market that hasn't held up well...

What do you think about Devon, 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.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value recommendation. The Fool's disclosure policy always gets a perfect score.


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.

Compare Brokers

Fool Disclosure

DocumentId: 751862, ~/Articles/ArticleHandler.aspx, 2/14/2012 8:14:12 PM

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...

Today's Market

updated Moments ago Sponsored by:
DOW 12,878.28 4.24 0.03%
S&P 500 1,350.50 -1.27 -0.09%
NASD 2,931.83 0.44 0.02%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

2/14/2012 4:00 PM
DVN $66.90 Up +1.26 +1.92%
Devon Energy Corp CAPS Rating: *****
CVX $106.49 Up +0.11 +0.10%
Chevron Corp CAPS Rating: *****
RIG $48.44 Down -0.87 -1.76%
Transocean, Inc. CAPS Rating: *****
XOM $84.67 Up +0.25 +0.30%
ExxonMobil Corp CAPS Rating: ****
BP $46.47 Down -0.90 -1.90%
BP p.l.c. (ADR) CAPS Rating: ****
CHK $22.71 Up +0.05 +0.22%
Chesapeake Energy… CAPS Rating: *****
COP $73.60 Up +0.79 +1.09%
ConocoPhillips CAPS Rating: *****

Advertisement