Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas and oil producer Devon Energy (NYSE: DVN ) has earned a coveted five-star ranking.
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 (Founded) |
Oklahoma City (1971) |
| Market Cap |
$35.05 billion |
| Industry |
Oil and gas exploration and production |
| Trailing-12-Month Revenue |
$8.84 billion |
| Management |
CEO John Richels (since 2010)
CFO Jeffrey Agosta (since 2010)
|
| Return on Equity (Average, Past 3 Years) |
(6.4%) |
| Cash/Debt |
$3.06 billion / $6.8 billion |
| Dividend Yield |
0.8% |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 1,957 members who have rated Devon believe the stock will outperform the S&P 500 going forward. These bulls include line70day and lgcphixion.
Just last month, line70day listed a few of Devon's positives: "5-star/ good P/E / [dividend] / good fundamentals."
In fact, Devon currently sports a cheapish forward P/E of 10.4. That represents a discount to other natural gas plays like Anadarko Petroleum (NYSE: APC ) (18.2), Canadian Natural Resources (NYSE: CNQ ) (11.5), and Petrohawk Energy (NYSE: HK ) (15.5).
CAPS member lgcphixion elaborates on the Devon bull case:
Oil is going to become an increasing game of scarcity that may draw profits, but in the greater long term the oil industry is destined to collapse either by its own scarcity or the green movement. Natural gas is set up to be an immediate predecessor, and Devon is well positioned for this transition. While green tech. like solar is more promising in the long run, there is a lot of risk involved and wide-scale solar success is still decades off.
What do you think about Devon, 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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