4-Star Stocks Poised to Pop: Diamond Offshore

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore oil and gas driller Diamond Offshore (NYS: DO) has earned a respected four-star ranking.

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

Diamond Offshore facts

Headquarters (founded)Houston (1989)
Market Cap$9.4 billion
IndustryOil and gas drilling
Trailing-12-Month Revenue$3.2 billion
ManagementCEO Lawrence Dickerson (since 2008)
CFO Gary Krenek (since 1998)
Return on Equity (average, past 3 years)27.6%
Cash/Debt$1.4 billion / $1.5 billion
Dividend Yield0.7%

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

On CAPS, 98% of the 2,013 members who have rated Diamond Offshore believe the stock will outperform the S&P 500 going forward.  

Earlier this month, one of those Fools, Synchronism, listed several reasons to look into the company:

[G]reat credit record, its favorable history of operational efficiency (complete with translation to good turnover ratios and significant improvements in its cash conversion cycle), decent profitability (that's consistently better than the top three in the industry), sufficient competitive advantages to compete with the big boys and keep out the small-time riffraff, and a market outlook that'll get you high on its long-term prospects.

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. Of course, despite a strong four-star rating, Diamond Offshore may not be your top choice.

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

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The 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 Fool's disclosure policy always gets a perfect score.

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