5-Star Stocks Poised to Pop: Atwood Oceanics

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Based on the aggregated intelligence of 130,000-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.

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, Tex. (1968)

Market Cap

$1.58 billion

Industry

Oil and Gas Drilling

TTM Revenue

$608.2 million

Management

CEO John Irwin (since 1993)

CFO James M. Holland (since 1988)

Return on Equity (average, last three years)

27.6%

Competitors

Transocean (NYSE: RIG)

Noble (NYSE: NE)

CAPS members bullish on ATW also bullish on

Vale (NYSE: VALE)

Apple (Nasdaq: AAPL)

CAPS members bearish on ATW also bearish on

Diamond Offshore (NYSE: DO)

National Oilwell Varco (NYSE: NOV)

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

Over on CAPS, fully 1,830 of the 1,846 members who have rated Atwood -- some 99% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star wbinv2100, who is ranked in the top 20% of our community, and dvena.

Last week, wbinv2100 highlighted several of the stock's marvelous metrics:

[W]ith the new Obama nation, and its trillion dollar budget deficits, inflation is on the horizon. I don't see electric cars becoming viable any time soon. Because of [Atwood's] numbers (ROE = 32%, 5YrEPS = 89%, 5YrFutureEPS = 27%, P/E = 5), I am bullish on this company.

In a pitch from two weeks earlier, dvena drills down even further:

[Atwood] is not a pure energy play. They make money by leasing the rigs that drill for oil, sometimes at astronomical rates. It has fallen, however, with the price of oil. With the emerging middle class in both China and India, and the falling rates of return in all the world's known oilfields, the price of oil will be back up to $4 a gallon far sooner than any of us would like. When that happens [Atwood] goes with it.

What do you think about Atwood Oceanics, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Atwood, Apple, and National Oilwell are Motley Fool Stock Advisor picks. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

11/20/2009 4:01 PM
ATW $36.99 Down -1.15 -3.02%
Atwood Oceanics, I… CAPS Rating: *****
DO $97.66 Down -2.54 -2.53%
Diamond Offshore D… CAPS Rating: ****
NE $40.02 Down -1.68 -4.03%
Noble Corp CAPS Rating: *****
NOV $42.79 Down -1.04 -2.37%
National Oilwell V… CAPS Rating: *****
RIG $83.80 Down -1.42 -1.67%
Transocean, Inc. CAPS Rating: *****
AAPL $199.92 Down -0.59 -0.29%
Apple, Inc. CAPS Rating: ***

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