Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas producer Chesapeake Energy
With that in mind, let's take a closer look at Chesapeake's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Oklahoma City (1989)|
|Market Cap||$22.04 billion|
|Industry||Oil and gas exploration and production|
|Trailing-12-Month Revenue||$9.37 billion|
|Management||Co-Founder/Chairman/CEO Aubrey McClendon
CFO Domenic Dell'Osso
|Return on Equity (Average, Past 3 Years)||(7.5%)|
|Cash/Debt||$102 million / $12.64 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 7,226 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward. These bulls include former Fool contributor Toby Shute (XMFSmashy) and Jajimon.
About a month ago, Toby brought Chesapeake's improving financial position to our community's attention: "I think these guys are finally getting serious about cutting back on leasehold acquisitions and reducing debt. See my article on the new 25/25 plan."
Currently, Chesapeake even trades at a cheapish price-to-cash flow of 4.6. That represents a discount to competitors like Anadarko (7.6), BP (7.3), and Conoco (7.3).
CAPS member Jajimon elaborates on the bull case:
Long-term, natural gas prices will inevitably rise. The real benefit will be 2-4 years down the road, but [Chesapeake] is well positioned in the near term. Its brand is becoming more widespread in the investment community thanks to its high-risk/high-reward strategy, surviving the 2008-2010 era, and the recent Icahn investment. With natural gas at an already low market price, only positive catalysts remain for the commodity.
What do you think about Chesapeake, 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. Motley Fool Alpha owns shares of Chesapeake, which is a Motley Fool Inside Value pick. Try any of our Foolish newsletter services free for 30 days.
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