Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract driller Ensco International (NYSE: ESV ) 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 Ensco's business, and see what CAPS investors are saying about the stock right now.
Ensco facts
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Headquarters (founded)
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Dallas, Texas (1975)
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Market Cap
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$4.71 billion
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Industry
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Oil and gas drilling
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TTM Revenue
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$2.40 billion
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Management
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CEO Daniel Rabun (since 2007)
CFO James Swent III (since 2003)
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Return on Equity (average last 3 years)
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26.7%
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Competitors
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Diamond Offshore (NYSE: DO )
Pride International (NYSE: PDE )
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CAPS members bullish on ESV also bullish on
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Transocean (NYSE: RIG )
Noble (NYSE: NE )
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CAPS members bearish on ESV also bearish on
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Ford Motor (NYSE: F )
Amazon.com (Nasdaq: AMZN )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 116 of the 120 All-Star members who have rated Ensco -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include giftofgod and sandvig, both of whom are ranked in the top 20% of our community.
Two weeks ago, giftofgod made this prediction: "Very cheap valuation plus a small dividend, which is unusual amongst oil stocks. I really think oil is near a bottom right now, but time will tell us in the end."
In an earlier pitch from last month, sandvig shared that sentiment, drilling further into Ensco's valuation:
Pretium iustum est - The Price is Right.
This company has little debt, a PE ratio of about 5, and has a ROI around 23%. Even with the price of oil "down," I will go out on a limb and suggest we have not seen the end of drilling. I would think that the chances are pretty good that the shares prices will double within three years.
What do you think about Ensco, 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.
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