5-Star Stocks Poised to Pop: Chesapeake Energy

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas producer Chesapeake Energy (NYSE: CHK  ) has earned a coveted five-star ranking.

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 facts

Headquarters (founded)

Oklahoma City, Oklahoma (1989)

Market Cap

$9.49 billion

Industry

Independent Oil and Gas

Trailing 12 Months Revenue

$11.63 billion

Management

Co-Founder/CEO Aubrey McClendon
CFO Marcus Rowland

Return on Equity (average, last three years)

13.5%

Dividend Yield

1.9%

Competitors

Devon Energy (NYSE: DVN  )
EOG Resources (NYSE: EOG  )
XTO Energy (NYSE: XTO  )

CAPS members bullish on CHK also bullish on

Apple (Nasdaq: AAPL  )
Johnson & Johnson (NYSE: JNJ  )

CAPS members bearish on CHK also bearish on

Vale (NYSE: RIO  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 6,360 of the 6,526 members who have rated Chesapeake -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include sid1138 and All-Star angusthermopylae, who is ranked in the top 20% of our community.

Last month, sid1138 wrote that Chesapeake "is a very strong player in a weak market ... [Chesapeake] has done a lot to develop its properties. They are hedged such that they will still make money even in this down market. This will give them the strength, the cash, and the position to hit the market hard when it rebounds."

In a pitch from earlier this month, angusthermopylae also taps the stock as a natural turnaround opportunity:

Re-picking after getting crushed over the last year (I'm looking at it as "dollar-cost averaging" for my CAPS score.) Still a believer in natural gas in the long run -- basically, humanity will continue to grow, and anything that produces the energy to fuel this growth will become more precious. It's a faith play. There are numbers to back it up, but [Chesapeake] should come out of the financial wilderness a lot stronger and earlier than most of the other players. That's why the 2-4 year time frame.

What do you think about Chesapeake, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value pick. Apple is a Motley Fool Stock Advisor recommendation. Johnson & Johnson is selection of Income Investor. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (12)

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: 842157, ~/Articles/ArticleHandler.aspx, 11/24/2014 3:41:09 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