5-Star Stocks Poised to Pop: DCP Midstream (DPM)

5-Star Stocks Poised to Pop: DCP Midstream

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas transporter DCP Midstream Partners (NYSE: DPM ) has earned a coveted five-star ranking.

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

DCP facts

Headquarters (Founded)	Denver (2005)
Market Cap	$2.1 billion
Industry	Oil and gas storage and transportation
Trailing-12-Month Revenue	$1.5 billion
Management	CEO Mark Borer (since 2006) CFO Angela Minas (since 2008)
Return on Equity (Average, Past 3 Years)	19%
Cash/Debt	$2.0 million / $748.9 million
Dividend Yield	5.6%
Competitors	El Paso Enterprise Products Partners Martin Midstream Partners

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 204 members who have rated DCP believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, Motley Fool co-founder David Gardner (TMFSpiffyPop), nicely summed up the outperform argument:

With natural gas getting cheaper and cheaper it looks increasingly to me like more and more US businesses and consumers will adopt it, even if Congress doesn't help out, or tries to fight it. DCP, as a tollbooth company that gets paid for natural gas sloshing through its pipeline, should benefit. It already has -- the stock is about 50 percentage points ahead of the S&P 500 over the past two years, and that doesn't include the solid 5 % yield the unit shares are paying out. For these reasons, and in order better to study and to learn: Outperform.

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. Of course, despite its five-star rating, DCP may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Enterprise Products. 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 icon found on every comment.