4-Star Stocks Poised to Pop: GMX Resources

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas producer GMX Resources (NYSE: GMXR  ) has earned a respected four-star ranking.

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

GMX facts

Headquarters (Founded)	Oklahoma City (1998)
Market Cap	$131.71 million
Industry	Oil and gas exploration and production
Trailing-12-Month Revenue	$94.46 million
Management	Co-Founder/Chairman/CEO Ken Kenworthy, Jr. CFO James Merrill
Return on Equity (Average, Past 3 Years)	(33.8%)
Cash/Debt	$4.07 million / $258.85 million
Competitors	BP (NYSE: BP  ) Cabot Oil & Gas (NYSE: COG  ) Southwestern Energy (NYSE: SWN  )

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

On CAPS, 95% of the 437 members who have rated GMX believe the stock will outperform the S&P 500 going forward. These bulls include DannyNOLA and Charlie1368.

Late last year , DannyNOLA tapped GMX as a natural selection:

Currently, we have a huge natural gas excess supply and a crappy economy, but I think over the long term natural gas will play a bigger role. [GMX] is cheap and small so I am hoping one of the bigger players is willing to buy it soon while natural gas prices are still dirt cheap.

In fact, GMX currently trades at a paltry price-to-book of 0.5. That represents a clear discount to competitors BP (1.6), Cabot Oil & Gas (2.3), and Southwestern Energy (4.4).

CAPS member Charlie1368 elaborated in December on the bargain opportunity:

GMX Resources has amassed a body of assets that give it a solid competitive moat for at least the next few years. Trading at a discount to these assets which can produce long-term earnings potential, GMX Resources is a great value. Add in a decent balance sheet, solid cash flow, lots of insider buying, and bullish options sentiment, and you have a great buy.

What do you think about GMX, 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!