Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas explorer Callon Petroleum (NYSE: CPE) has earned a coveted five-star ranking.

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

Callon facts

Headquarters (founded)

Natchez, Miss. (1950)

Market Cap

$220 million


Oil and gas exploration and production

Trailing-12-Month Revenue

$136.42 million


Chairman/CEO Fred Callon

CFO Bobby Weatherly

Return on Capital (average, past 3 years)



$19.75 million / $166.45 million


Apache (NYSE: APA)


Carizzo Oil & Gas (Nasdaq: CRZO)

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

On CAPS, 95.5% of the 485 members who have rated Callon believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars llgrout and GREYGOLD, both of whom are ranked in the top 10% of our community.

Earlier this month, llgrout nicely summed up the bull case for Fools: "This company has good numbers, and add to that -- oil is going up this year -- equals potential for good growth."

Callon's attractive underdeveloped assets and cheapish valuation support its five-star CAPS status. Currently, Callon even trades at a substantial price-to-cash flow (2.2) discount to competitors Apache (6.8), BP (7.4), and Carizzo (9.0), as well as integrated energy gorillas like ExxonMobil (NYSE: XOM) (8.5) and Chevron (NYSE: CVX) (6.2).

CAPS All-Star GREYGOLD expands on the outperform argument:

Fred Callon and his management team have been around for a long time, they know what it takes to bring everything together and make it all work. ... They still have all of their valuable offshore properties and are now looking for onshore reserves both oil and natural gas. They have entered the Haynesville shale play. ... This is a great investment at these levels. Buy it, put it away and you will be amazed what it will do for you. ... Long term 25-30 dollar potential.

What do you think about Callon, 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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chevron is a Motley Fool Income Investor pick. The Fool owns shares of Exxon. Try any of our Foolish newsletter services free for 30 days.

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