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5-Star Stocks Poised to Pop: Devon Energy

Based on the aggregated intelligence of 180,000-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 $23.1 billion
Industry Oil and gas exploration and production
Trailing-12-Month Revenue $9.5 billion
Management

CEO John Richels (since 2010)

CFO Jeffrey Agosta (since 2010)

Return on Equity (average, past 3 years) (6.6%)
Cash/Debt $6.8 billion / $7.9 billion
Dividend Yield 1.2%

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

On CAPS, 98% of the 2,002 members who have rated Devon believe the stock will outperform the S&P 500 going forward. These bulls include Veritas1010 and NHWeston.  

In late August, Veritas1010 listed several of Devon's positives:

N.gas, domestically focused now that it has shed international foray. Low price, low debt, solid unconventional opportunities with sound yield potential. Dividend, low, yes, but compensated with capital gains via growth.

In fact, Devon currently sports a particularly paltry P/E of 4.1. That represents a clear discount to other natural gas plays such as Anadarko Petroleum (NYSE: APC  ) (37.4), Apache (NYSE: APA  ) (8.1), and Chesapeake Energy (NYSE: CHK  ) (17).

CAPS member NHWeston expands on Devon as a relatively potent pick:

If you like [Chesapeake], you should adore Devon. ... Devon comes WITHOUT Aubrey McClendon. ... [A]nd Devon is close to its annual Low. [I know, what stock isn't....] At its height, Devon has been in mid 90's so there are real possibilities here.

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!

Interested in another easy way to track Devon? 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.


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DocumentId: 1563064, ~/Articles/ArticleHandler.aspx, 5/28/2012 3:19:16 AM

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Related Tickers

5/25/2012 4:00 PM
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: ****
APC $63.08 Down -0.57 -0.90%
Anadarko Petroleum… CAPS Rating: ****
APA $82.38 Up +0.29 +0.35%
Apache Corp CAPS Rating: *****

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