World Fuel Services' Shares Could Take Off

With crude oil poking its head near 52-week highs, lots of energy companies are getting rich these days. One of them is likely World Fuel Services (INT Quote).

While it is difficult to know for sure -- the company's executives don't like talking much in between quarterly announcements and don't report until after the close of trading on Thursday -- what is apparent is that World Fuel's stock hasn't benefited from the recent run-up in crude oil and petroleum product prices. This disconnect cannot last forever, and some investors are starting to see the stock as a value play.

Through its aviation, marine and land business segments, World Fuel is a reseller of fuel to customers such as governments, airline operators, tanker fleets and ground distribution networks. With a $1.1 billion market cap, World Fuel is small in the land of 12-figure oil giants. However, the role that the company plays in the energy sector is truly global in scale.

The resale fuel business is highly segmented, comprised of many small operating entities throughout the globe, says JPMorgan analyst Jonathan Chappell. World Fuel is the only publicly traded company of its size in the industry, he says.

Among other functions, World Fuel helps its clients manage risks associated with fuel by providing real-time data, reducing price volatility and eliminating quality concerns. The company operates through 43 offices in 23 countries around the world, according to its Web site.