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5-Star Stocks Poised to Pop: Denbury Resources

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas company Denbury Resources (NYSE: DNR  ) has earned a coveted five-star ranking.

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

Denbury facts

Headquarters (Founded)

Plano, Texas (1951)

Market Cap

$4.72 billion

Industry

Independent oil and gas

Trailing-12-Month Revenue

$2.09 billion

Management

CEO Phil Rykhoek Sr. (since 2009)

COO Ronald Evans (since 2009)

Return on Equity (Average, Past 3 Years)

6.7%

Cash/Debt

$210 million / $2.3 billion

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

On CAPS, 98% of the 940 members who have rated Denbury believe the stock will outperform the S&P 500 going forward. These bulls include skipper09 and All-Star Keekers44.

This past summer, skipper09 touched on the positive factor working in Denbury's favor: "Natural gas, a domestic clean energy in abundance enough that we could export it one day. What's not to like?"

Over the next five years, in fact, Denbury is expected to grow its bottom line at a brisk rate of 24.5% annually. That's much faster than other natural gas plays like Apache (NYSE: APA  ) (9.2%), Chesapeake Energy (NYSE: CHK  ) (11%), and Devon Energy (NYSE: DVN  ) (12.2%).

CAPS All-Star Keekers44 elaborates on the growth opportunity:

[Denbury] has jumped into the Bakken foray and has grown its reserves substantially there. [Denbury] has five rigs operating in this area with plans to have 7 by the end of the year. [Denbury] has a great management team with long-term thinking. This stock appears undervalued given its growth prospects.

What do you think about Denbury, 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!

Interested in another easy way to track Denbury? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Devon. Motley Fool newsletter services have recommended buying shares of Chesapeake. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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.

  • Report this Comment On September 26, 2011, at 6:25 PM, tigervol wrote:

    Denbury is NOT a natural gas company! What is skipper09 talking about? Seems like you should check his comments before posting them!

  • Report this Comment On September 27, 2011, at 9:06 AM, hydplant wrote:

    Denbury is an oil company with a low percentage of income coming from natural gas. Where did skipper09 get this info?

  • Report this Comment On September 27, 2011, at 11:57 AM, bunngolf wrote:

    Publish or perish, even without fact checking. That is the MF way to keep the churn on newsletters.

  • Report this Comment On September 29, 2011, at 4:09 PM, birge1 wrote:

    DNR has a great busns model, pumping oil out of old fields. yet they waste too many millions on debt. analysts should hammer every co to reduce debt; nobody listens to stkhldrs. also o&g cos should use up tax losses and transform into actual tax payers, meaning they're making real profits. Contango (mcf) does it, proof it can happen.

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DocumentId: 1559003, ~/Articles/ArticleHandler.aspx, 5/28/2012 3:18:00 AM

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Related Tickers

5/25/2012 4:01 PM
DNR $15.56 Up +0.35 +2.30%
Denbury Resources,… CAPS Rating: *****
DVN $60.02 Down -0.41 -0.68%
Devon Energy Corp CAPS Rating: *****
CHK $15.81 Up +0.23 +1.48%
Chesapeake Energy… CAPS Rating: ****
APA $82.38 Up +0.29 +0.35%
Apache Corp CAPS Rating: *****

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