Thursday, May 16, 2013

Why Devon Energy Is Ready to Rebound

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

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

Devon facts

Headquarters (founded)

Oklahoma City (1971)

Market Cap

$23.8 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$8.8 billion

Management

CEO John Richels (since 2010)

CFO Jeffrey Agosta (since 2010)

Return on Equity (average, past 3 years)

3.4%

Cash/Debt

$6.5 billion / $12.2 billion

Dividend Yield

1.5%

Competitors

Chesapeake Energy

Encana

EOG Resources

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

On CAPS, 97% of the 2,225 members who have rated Devon believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, TMFrank, highlighted Devon as a bargain opportunity worth looking into: "Fairly cheap on a [price-to-book value] basis and a great balance sheet. Add in the potential for a continued rebound in Nat Gas prices, which would provide a decent catalyst, and this is good enough for a [CAPS] pick."

Of course, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

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