Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas giant Chevron (NYSE: CVX ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Chevron's business and see what CAPS investors are saying about the stock right now.
Chevron facts
| Headquarters (Founded) |
San Ramon, Calif. (1879) |
| Market Cap |
$196.5 billion |
| Industry |
Integrated oil and gas |
| Trailing-12-Month Revenue |
$198.2 billion |
| Management |
Chairman/CEO John Watson
CFO Patricia Yarrington
|
| Return on Equity (Average, Past 3 Years) |
20.2% |
| Dividend Yield |
3% |
| Competitors |
BP (NYSE: BP )
ExxonMobil (NYSE: XOM )
Royal Dutch Shell (NYSE: RDS-A )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 3,654 members who have rated Chevron believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mrindependent, who is ranked in the top 2% of our community, and garrettwake.
Late last year, mrindependent followed the lead of Mad Money maven Jim Cramer and got bullish on Chevron: "Cramer says that Chevron is highly leveraged to the price of crude. I agree that crude prices are likely to increase amid economic recovery and inflationary pressures caused by worldwide money printing. Valuation looks attractive."
Currently, Chevron even trades at a paltry price-to-cash flow of 6.5, representing a discount to rivals BP (6.9), Exxon (9.1), and Royal Dutch (7.8), as well as other energy plays like ConocoPhillips (NYSE: COP ) (6.7) and Suncor (NYSE: SU ) (12.8).
CAPS member garrettwake expands on the outperform case:
Chevron should do very well against the S&P over the next few years. Smart marketing strategy and a solid management team will keep this company churning out green [at least] within the forseeable future. Five years plus they should still be at the top of the game but with energy supplies and demands shifting toward more diverse and sustainable options we'll have to keep an eye on Chevron and hope they jump on the right bandwagon at the right time.
What do you think about Chevron, 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!
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