Markets

3 Reasons Cameron International Corp.'s Stock Could Rise

CAM Total Return Price Chart
CAM Total Return Price Chart

CAM Total Return Price data by YCharts

Through the end of June, the company had more than $450 million authorized for further buybacks. If management can diligently continue its share repurchase activity and further reduce shares outstanding, long-term, buy-and-hold investors will be rewarded.

Final thoughts: Best-case scenario

Don't just assume these things are a promise of market-beating returns. It's important to remember that things rarely go exactly as we expect in life, or when investing. Cameron still has to execute for shareholders to get the benefit of the three things I've discussed here. The company faces stiff competition, and it operates in markets where geopolitical risk could affect its business.

Cameron stock is performing great in 2014, but it has underperformed the market over the past two years even as the business has strengthened and the market opportunity has gotten bigger. The bottom line? If you invest in Cameron -- or any company -- keep an eye on the business performance, because if Cameron does execute on the opportunities in front of it, the market will eventually reward patient investors.

Do you know this energy tax "loophole"?

Record oil and natural gas production is changing the lives of millions of Americans, and the IRS is encouraging investors to support our growing energy renaissance, with a 100% legal tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, " The IRS Is Daring You to Make This Investment Now! ," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

The article 3 Reasons Cameron International Corp.'s Stock Could Rise originally appeared on Fool.com.

Jason Hall has no position in any stocks mentioned. The Motley Fool owns shares of Transocean. Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

RIG NE SLB

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More