Please ensure Javascript is enabled for purposes of website accessibility

Why Heckmann Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 24, 2013 at 2:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wastewater disposal specialist Heckmann (NESC) has earned a coveted five-star ranking.

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

Heckmann facts

Headquarters (founded)

Coraopolis, Pa. (2007)

Market Cap

$1.0 billion

Industry

Oil and gas equipment and services

Trailing-12-Month Revenue

$352.0 million

Management

CEO Mark Johnsurd (since 2012)

CFO Jay Parkinson (since 2012)

Return on Equity (average, past 3 years)

(1%)

Cash/Debt

$16.2 million / $566.1 million

Competitors

Basic Energy Services

Key Energy Services

Schlumberger

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

On CAPS, 97% of the 552 members who have rated Heckmann believe the stock will outperform the S&P 500 going forward.   

Just yesterday, one of those Fools, Googlespooch, succinctly summed up the Heckmann bull case for our community:

With fracking on the rise, it should seem that the US government will not block its continuation. I say this because it would be one of the most disastrous policy decisions in a long time if the government really did block fracking. Despite this, however, it is important to consider that fracking is still ecologically damaging. It produces filthy water, damaged soil layers, etc. It should seem, then, that the EPA may begin to require more of the fracking companies in terms of environmental regulation. Enter [Heckmann]! [Heckmann] already recycles fracking water in addition to a few other services that the company provides. Were the EPA to bring in increased environmental regulation, it should not seem farfetched to consider Hekkman as a big winner considering water treatment would be one of the top regulation targets. With established infrastructure and know-how, Hekkman would be poised to handle EPA regulations very well.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Heckmann may not be your top choice.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nuverra Environmental Solutions, Inc. Stock Quote
Nuverra Environmental Solutions, Inc.
NESC
Schlumberger Limited Stock Quote
Schlumberger Limited
SLB
$48.21 (3.26%) $1.52
Key Energy Services, Inc. Stock Quote
Key Energy Services, Inc.
KEG
$2.50 (0.00%) $0.00
Basic Energy Services, Inc. Stock Quote
Basic Energy Services, Inc.
BASX
$0.00 (0.00%) $0.00

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.