5-Star Stocks Poised to Pop: Seadrill

Brian D. Pacampara, The Motley Fool

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore driller Seadrill (NYS: SDRL) has earned a coveted five-star ranking.

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

Seadrill facts

Headquarters (founded)

Hamilton, Bermuda (1972)

Market Cap

$16.0 billion

Industry

Oil and gas drilling

Trailing-12-Month Revenue

$4.3 billion

Management

Chairman/President John Fredriksen CEO Alf Thorkildsen

Return on Equity (average, past 3 years)

21.7%

Cash/Debt

$496.0 million / $9.9 billion

Dividend Yield

8.9%

Competitors

EnscoNobleTransocean

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

On CAPS, 99% of the 549 members who have rated Seadrill believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, jdwelch62, tapped Seadrill as an attractive income opportunity:

The world's thirst for oil doesn't show any signs of diminishing. We're going to need to drill in deeper waters to find the next big reserves. SDRL is positioned to provide the means of doing so with their rigs. I've been loading up on high yielding stocks that look like they can sustain their dividend payouts for the long haul, and just added SDRL to my portfolio.

What do you think about Seadrill, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Ensco, Noble, and 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 Fool's disclosure policy always gets a perfect score.

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