Piotroski’s Best and Worst Large Cap Stocks

By Joel Stonington - 2011-12-06T01:37:02Z

Photograph by David Paul Morris/Bloomberg

10 of 19

Piotroski's Best: Chevron

Business: Produces and transports crude oil and natural gas

Piotroski Score: 9

Chevron's (CVX) return on assets jumped from 6.44 percent in 2009 to 10.89 percent in 2010. Its operating cash flow of $31.36 billion in 2010 exceeded net income of $19.02 billion -- favorable, according to Piotroski. Gross margins rose from 12.68 percent in 2009 to 16.5 percent in 2010.

Outlook for the Company:

Bull Case: Barclays says that Chevron will outperform in 2011, given its attractive valuation and management's improved record at meeting its production guidance.

Bear Case: Barclays notes that Chevron is dealing with an oil spill in Brazil's Frade Field that has exceeded initial estimates.