5-Star Stocks Poised to Pop: Atwood Oceanics
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore drilling contractor Atwood Oceanics (NYS: ATW) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Atwood's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Houston (1968)|
|Market Cap||$3.0 billion|
|Industry||Oil and gas drilling|
|Trailing-12-Month Revenue||$712.5 million|
|Management||CEO Robert Saltiel (since 2009)|
CFO Mark Mey (since 2010)
|Return on Equity (average, past 3 years)||17.8%|
|Cash/Debt||$79.0 million / $657.7 million|
|Competitors||Diamond Offshore Drilling|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 99% of the 2,387 members who have rated Atwood believe the stock will outperform the S&P 500 going forward.
There is plenty of risk involved in ordering the construction of drilling rigs, whether jackups or deep water rigs, without contracts from oil exploration and production companies in hand before shipyard work begins. Still, management of Atwood seems to be savvy in knowing what and when to build. ... As long as they keep expanding their rig count cautiously (especially the deep water rigs) and oil prices don't plunge much lower, I'm a buyer at this level.
If you want market-topping returns, 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 its five-star rating, Atwood may not be your top choice.
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The article 5-Star Stocks Poised to Pop: Atwood Oceanics originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Atwood and Transocean. Motley Fool newsletter services have recommended buying shares of Atwood. 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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