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5-Star Stocks Poised to Pop: Petro-Canada

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:59PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Petro-Canada (NYSE:PCZ) 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 Petro-Canada's business, and see what CAPS investors are saying about the stock right now.

Petro-Canada facts

Headquarters (founded)

Calgary, Canada (1969)

Market Cap

$11.23 billion

Industry

Integrated Oil & Gas

TTM Revenue

$26.63 billion

Management

CEO Ronald Brenneman (since 2000)
CFO Ernest Roberts (since 2000)

Return on Equity (average last three years)

25.2%

Dividend Yield

2.8%

Competitors

Suncor Energy (NYSE:SU),
Imperial Oil (AMEX:IMO)

CAPS members bullish on PCZ also bullish on

Transocean (NYSE:RIG),
Chesapeake Energy (NYSE:CHK)

CAPS members bearish on PCZ also bearish on

Valero Energy (NYSE:VLO),
Dell (NASDAQ:DELL)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 652 of the 665 members who have rated Petro-Canada -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include iantalbot and dustydiamond.

Last month, iantalbot touched on Petro-Canada's tasty yield (which has gone down a few points since): "There is a limited amt of oil and emerging market demand alone is going to increase demand. P/E at all time low. Solid, conservative Canadian oil company with a 3+% yield currently."

In a pitch from earlier this month, dustydiamond agrees with that line of thinking, writing:

Energy demand should increase significantly once this recession abates and capital spending accelerates. The BRIC economies also have consolidated and will heavily influence crude demand in their next growth cycle. Once crude prices get closer to $100 per barrel, the oil sands projects currently on hold should go back into production and ramp up their earnings going forward.

What do you think about Petro-Canada, 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 and Dell are Motley Fool Inside Value picks. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Suncor Energy Inc. Stock Quote
Suncor Energy Inc.
SU
$31.02 (1.94%) $0.59
Dell Technologies Inc. Stock Quote
Dell Technologies Inc.
DELL.DL
Transocean Ltd. Stock Quote
Transocean Ltd.
RIG
$3.56 (2.44%) $0.09
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q
Valero Energy Corporation Stock Quote
Valero Energy Corporation
VLO
$112.73 (1.86%) $2.06
Imperial Oil Limited Stock Quote
Imperial Oil Limited
IMO
$44.11 (1.45%) $0.63

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

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