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5-Star Stocks Poised to Pop: Nordic American Tanker

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:07PM

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Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, crude oil tanker operator Nordic American (NYSE:NAT) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Nordic American facts

Headquarters (founded)

Hamilton, Bermuda (1995)

Market Cap

$1 billion

Industry

Shipping

Trailing-12-Month Revenue

$251.4 million

Management

CEO Herbjorn Hansson (since 1995)

CFO Turid Sorensen (since 2006)

Return on Equity (average last three years)

14.3%

Dividend Yield

22.0%

Competitors

Frontline (NYSE:FRO),

Overseas Shipholding (NYSE:OSG)

CAPS members bullish on NAT also bullish on:

Chesapeake Energy (NYSE:CHK),

General Electric (NYSE:GE)

CAPS members bearish on NAT also bearish on:

DHT Maritime (NYSE:DHT),

ExxonMobil (NYSE:XOM)

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

Over on CAPS, 95% of the 138 All-Star members who have rated Nordic American believe the stock will outperform the S&P 500 going forward. These bulls include Vet67to82 and UKIAHED.

Last month, Vet67to82 informed our community that, following Nordic American's December dividend payment, "the Company will have paid a dividend for 45 consecutive quarters since the autumn of 1997 when the first three vessels in the Company's fleet were delivered and commenced operations. The spot Suezmax tanker market has been strong during the third quarter and up to the time of this writing."

In a pitch just four days later, UKIAHED shared that bullishness, writing:

This oil tanker company currently has 12 ships in fleet - with 2 more online by 2010. The company has very low debt on the balance sheet which should make getting thru the economy easy. The current div is very high (I expect it to come down as shipping rates drop). This is a good shipping play even with the Baltic Dry Index in the tank...

As we all know - oil will need to be shipped to the US for a long time.

What do you think about Nordic American, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value pick. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Nordic American Tankers Limited Stock Quote
Nordic American Tankers Limited
NAT
$2.59 (-3.72%) $0.10
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
XOM
$91.45 (0.95%) $0.86
General Electric Company Stock Quote
General Electric Company
GE
$77.14 (2.95%) $2.21
Frontline Ltd. Stock Quote
Frontline Ltd.
FRO
$10.93 (-1.88%) $0.21
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q
DHT Holdings, Inc. Stock Quote
DHT Holdings, Inc.
DHT
$7.40 (-1.47%) $0.11
Overseas Shipholding Group, Inc. Stock Quote
Overseas Shipholding Group, Inc.
OSG
$2.67 (3.49%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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