4-Star Stocks Poised to Pop: SandRidge

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

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 6, 2012 at 12:00AM

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas producer SandRidge Energy (NYSE: SD) has earned a respected four-star ranking.

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

SandRidge facts

Headquarters (founded) Oklahoma City (1984)
Market Cap $3.3 billion
Industry Oil and gas exploration and production
Trailing-12-Month Revenue $1.6 billion
Management Chairman/CEO Tom Ward
President/COO Matthew Grubb
Return on Equity (average, past 3 years) 15.5%
Cash / Debt $421.1 million / $3.6 billion
Competitors Apache
Brigham Exploration
Occidental Permian

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

On CAPS, 96% of the 1,545 members who have rated SandRidge believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, Wakester0, succinctly summed up the SandRidge bull case for our community:

Low [PEG ratio] ... this stock has loads of potential. Nicely transitioned their focus from natural gas to oil in the last few years, and made dirt cheap purchases of promising areas for drilling. Like how they've positioned themselves.

Of course, that short pitch doesn't even come close to telling the entire story for SandRidge. You're in luck, though. The Fool's brand new premium report on SandRidge looks at all sides of one of the most compelling energy plays in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.

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