Why Transocean Is Poised to Outperform

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore drilling giant Transocean has earned a coveted five-star ranking.

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

Transocean facts

Headquarters (founded)

Zug, Switzerland (1953)

Market Cap

$20.4 billion

Industry

Oil and gas drilling

Trailing-12-Month Revenue

$10.1 billion

Management

CEO Steven Newman

CFO Esa Ikaheimonen

Return on Equity (average, past 3 years)

(7.5%)

Cash/Debt

$6.0 billion / $14.1 billion

Competitors

Ensco

Noble

Saipem


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

On CAPS, 97% of the 221 members who have rated Transocean believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, Becker2011, succinctly summed up the Transocean bull case for our community:

Deepwater drilling is their specialty and where their industry leading expertise lies. See a lot of the big players move here for giant contracts with these crazy high day rates over the next couple of years. As long as downtime doesn't hit them hard and their marketing can keep fleet utilization up -- they are set to really outperform. Also, who knows what [Carl Icahn ] is going to push for.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Transocean may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

The article Why Transocean Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara 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 may not 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.

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