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5-Star Stocks Poised to Pop: Atwood Oceanics

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore drilling contractor Atwood Oceanics (NYSE: ATW  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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.

Atwood facts

Headquarters (Founded)

Houston, Texas (1968)

Market Cap

$1.33 billion


Oil and Gas Drilling

TTM Revenue

$487.6 million


CEO John Irwin

CFO James Holland

Return on Capital (average last three years)



Diamond Offshore Drilling (NYSE: DO  ) ,

Ensco International (NYSE: ESV  )

CAPS members bullish on ATW also bullish on

Transocean (NYSE: RIG  ) ,

Chesapeake Energy (NYSE: CHK  )

CAPS members bearish on ATW also bearish on

Pride International (NYSE: PDE  ) ,

Apache (NYSE: APA  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 177 of the 180 All-Star members who have rated Atwood -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include Guardian21 and kcanant, both of whom are ranked in the top 30% of or community.

In July, Guardian21 wrote that, regardless of its price volatility, "demand for oil will continue to out pace supply. ... In addition, it appears that [Atwood's] once cyclical earnings are now becoming more stable, as these drillers continue to lock in long term contracts for their services."

A more recent pitch by kcacant two weeks ago shares that sentiment:

This borders on a no-brainer. They were turning a profit when oil was $40 bbl. They are making a profit now and are booked into the future. The stock trades up and down with the price of oil, while the VALUE of the company has very little (I didn't say nothing, I just said very little) to do with the price of oil. The downside seems mostly limited to BlackSwan risk (worldwide depression, terrorist attack etc.).

What do you think about Atwood, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Atwood Oceanics is a Motley Fool Stock Advisor pick. Chesapeake Energy is an Inside Value selection. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

10/26/2016 4:01 PM
ATW $8.43 Down -0.02 -0.24%
Atwood Oceanics CAPS Rating: ****
APA $61.68 Up +1.11 +1.83%
Apache CAPS Rating: ***
CHK $6.00 Down -0.11 -1.80%
Chesapeake Energy CAPS Rating: ***
DO $17.40 Up +0.42 +2.47%
Diamond Offshore D… CAPS Rating: **
ESV $8.77 Up +0.37 +4.40%
Ensco CAPS Rating: *****
PDE.DL $0.00 Down +0.00 +0.00%
Pride Internationa… CAPS Rating: ****
RIG $10.32 Up +0.29 +2.89%
Transocean CAPS Rating: ****