Sunday, December 30, 2012

5-Star Stocks Poised to Pop: Statoil

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Norwegian oil giant Statoil (NYSE: STO  ) has earned a coveted five-star ranking.

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

Statoil facts

Headquarters (founded) Stavanger, Norway (1972)
Market Cap $79.6 billion
Industry Integrated oil and gas
Trailing-12-Month Revenue $106.9 billion
Management CEO Helge Lund (since August 2004)
CFO Torgrim Reitan (since January 2011)
Return on Equity (average, past 3 years) 16.8%
Cash/Debt $16.6 billion / $20.8 billion
Dividend Yield 4.2%

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

On CAPS, 98% of the 1,090 members who have rated Statoil believe the stock will outperform the S&P 500 going forward. These bulls include jdill23 and fellow Fool Aimee Duffy (TMFAimeeD).

Just last month, jdill23 tapped Statoil as a particularly timely opportunity: "made several key acquisitions lately ... P/E at a good level."

In fact, Statoil currently sports a cheapish P/E of 7.4. That represents a slight discount to other big oil plays such as ConocoPhillips (NYSE: COP  ) (9.0), ExxonMobil (NYSE: XOM  ) (9.7), and PetroChina (NYSE: PTR  ) (9.8).

TMFAimeeD elaborates on the bull case:

Statoil has proved to be forward thinking, which is something I demand out of a long term investment. The company purchased U.S. shale oil and gas producer Brigham Exploration this year, targeting the American energy boom to add depth to its global operations.

For diversity, the company is engaged in a project with the Department of Energy to develop floating wind turbines off the coast of Maine. The company already has a prototype in operation off the coast of Norway.

Finally, closer to its traditional operations, Statoil also recently discovered one of the largest reserves in the North Sea, estimated to contain 900 million to 1.5 billion barrels of oil equivalent. I believe the future is bright for the Norwegian company.

What do you think about Statoil, 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!

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

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