5-Star Stocks Poised to Pop: Rowan Companies

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract driller Rowan Companies (NYSE: RDC) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Rowan's business and see what CAPS investors are saying about the stock right now.

Rowan facts

Headquarters (Founded)

Houston (1923)

Market Cap

$2.8 billion

Industry

Energy equipment and services

Trailing-12-Month Revenue

$1.98 billion

Management

CEO Matt Ralls (since January 2009)

CFO William Wells (since January 2007)

Return on Equity (Average, Past 3 Years)

18.6%

Cash / Debt

$681.1 million / $866.1 million

Competitors

Transocean (NYSE: RIG)

Diamond Offshore (NYSE: DO)

CAPS Members Bullish on RDC Also Bullish on

Noble (NYSE: NE)

Vale (NYSE: VALE)

CAPS Members Bearish on RDC Also Bearish on

Starbucks (Nasdaq: SBUX)

Netflix (Nasdaq: NFLX)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96.3% of the 655 members who have rated Rowan believe the stock will outperform the S&P 500 going forward. These bulls include utuk and All-Star 2Cores, who is ranked in the top 15% of our community.

In August, utuk reminded Fools that Rowan is all primed to pump up the profits: "Contract drilling services will only increase as oil demand picks back up world wide and Rowan has good margins and competent management to take advantage of further opportunities in the sector."

In a pitch from last month, 2Cores helps our community drill even deeper:

Besides being a contract driller, Rowan manufactures equipment. The latter pushed me into its arms as an investor. It has the advantage of manufacturing for three industries that are going to need its products ... desperately. Drilling rigs, mining equipment, and timber harvesters. I call that a sweet spot. Bring it!

What do you think about Rowan, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Starbucks and Netflix are Motley Fool Stock Advisor picks. The Fool owns shares of Starbucks. The Fool's disclosure policy always gets a perfect score.

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