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
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 |
Industry |
Oil and Gas Drilling |
TTM Revenue |
$487.6 million |
Management |
CEO John Irwin CFO James Holland |
Return on Capital (average last three years) |
13.5% |
Competitors |
Diamond Offshore Drilling
Ensco International |
CAPS members bullish on ATW also bullish on |
Transocean
Chesapeake Energy |
CAPS members bearish on ATW also bearish on |
Pride International
Apache |
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.).
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