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5-Star Stocks Poised to Pop: ConocoPhillips

Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas giant ConocoPhillips (NYSE: COP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Conoco's business and see what CAPS investors are saying about the stock right now.

Conoco facts

Headquarters (Founded)

Houston (1917)

Market Cap

$84.3 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$160 billion

Management

CEO James Mulva (since 2002)

CFO Sigmund Cornelius (since 2008)

Return on Equity (Average, Past 3 Years)

0.7%

Cash/Debt

$4.1 billion / $31.6 billion

Dividend Yield

3.8%

Competitors

ExxonMobil (NYSE: XOM  )

Chevron (NYSE: CVX  )

BP (NYSE: BP  )

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

On CAPS, 97% of the 5,310 members who have rated Conoco believe the stock will outperform the S&P 500 going forward. These bulls include jwhaley1210 and All-Star kirkydu, who is ranked in the top 1% of our community.

Two weeks ago, jwhaley1210 touched on Conoco's recent reshuffling initiatives: "Streamlining their business and shoring up the balance sheet, plus a healthy dividend = a nice energy play."

As part of its ongoing restructuring efforts, Conoco sold its interest in both Syncrude and CFJ Properties in the second quarter, and also announced plans to divest its entire stake in Russian oil giant Lukoil. In fact, management expects about $7 billion to $8 billion of its $10 billion asset-disposition plan to be complete by year's end, with the majority of proceeds going toward debt reduction. While Conoco's returns on capital have come in substantially lower than those of rivals Exxon, Chevron, and even BP over the past several years, the company's program to enhance shareholder value seems to be paying off earlier than expected.

CAPS All-Star kirkydu sums it up:

Buffett got it right with these guys, he was just early -- a forgivable and helpful sin for us as it pointed at an investment in a great company with good things in the pipe. Good balance sheet, great properties, right side of the energy equation all around. Even in a low price environment due to short term deflationary pressures, margins on refining, of which [Conoco] is a leader offsets any margin pressure on actual nat gas or oil.

What do you think about Conoco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chevron is a Motley Fool Income Investor recommendation. The Fool owns shares of ExxonMobil. The Fool's disclosure policy always gets a perfect score.


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Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

10/21/2014 4:00 PM
BP $42.26 Up +1.10 +2.67%
BP p.l.c. (ADR) CAPS Rating: ****
COP $70.59 Up +1.76 +2.56%
ConocoPhillips CAPS Rating: *****
CVX $115.09 Up +3.60 +3.23%
Chevron CAPS Rating: ****
XOM $93.65 Up +1.88 +2.05%
ExxonMobil Corp CAPS Rating: ****

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