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4-Star Stocks Poised to Pop: BP Prudhoe Bay

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:54PM

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This stock could bring market-beating returns.

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil field royalty trust BP Prudhoe Bay (NYSE:BPT) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

BP Prudhoe Bay facts 

Headquarters (founded)

New York, New York (1989)

Market Cap

$1.43 billion

Industry

Oil and gas exploration and production

TTM Revenue

$239.93 million

Compound Annual Revenue Growth (average last five years)

34.2%

Dividend Yield

17.4%

Competitors

San Juan Basin Royalty Trust (NYSE:SJT),

Hugoton Royalty Trust (NYSE:HGT)

CAPS members bullish on BPT also bullish on

Southern Copper (NYSE:PCU),

Freeport-McMoRan Copper & Gold (NYSE:FCX)

CAPS members bearish on BPT also bearish on

Chesapeake Energy (NYSE:CHK),

First Solar (NASDAQ:FSLR)

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

Over on CAPS, 650 of the 676 members who have rated BP Prudhoe Bay -- or 96% -- believe the stock will outperform the S&P 500. These bulls include WilleyNilley and MalibuGuru.

Earlier this month, WilleyNilley brought Prudhoe Bay's outsized yield to our community's attention: "Look for this one to consistently outperform the market. 17% yield at current levels and oil will surely move higher."

In a pitch also from early December, MalibuGuru agrees, highlighting the stock's inherent advantage:

Even If you expect the price of oil to stay between 40-80 $/bl through the next three to five years (highly unlikely) This stock will continue to be solvent, and very likely continue to increase the dividend. This trust also has a huge moat, receiving a premium on the first x million barrels sold from one of the largest, longest producing oil field in North America.

What do you think about BP Prudhoe Bay, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.

Foolish 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

BP Prudhoe Bay Royalty Trust Stock Quote
BP Prudhoe Bay Royalty Trust
BPT
$14.73 (5.29%) $0.74
First Solar, Inc. Stock Quote
First Solar, Inc.
FSLR
$101.90 (2.75%) $2.73
Freeport-McMoRan Inc. Stock Quote
Freeport-McMoRan Inc.
FCX
$30.27 (5.25%) $1.51
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q
San Juan Basin Royalty Trust Stock Quote
San Juan Basin Royalty Trust
SJT
$12.23 (1.75%) $0.21

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

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