Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract driller Ensco (NYSE: ESV ) has earned a coveted five-star ranking.
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
| Headquarters (Founded) |
London (1975) |
| Market Cap |
$11.0 billion |
| Industry |
Oil and gas drilling |
| Trailing-12-Month Revenue |
$2.3 billion |
| Management |
Chairman/CEO Daniel Rabun
CFO James Swent, III |
| Return on Equity (Average, Past 3 Years) |
10.9% |
| Cash/Debt |
$479.9 million / $5.1 billion |
| Dividend Yield |
2.9% |
| Competitors |
Diamond Offshore Drilling (NYSE: DO )
Noble (NYSE: NE )
Transocean (NYSE: RIG ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 1,095 members who have rated Ensco believe the stock will outperform the S&P 500 going forward. These bulls include eksummers620 and All-Star Babachrono, who is ranked in the top 15% of our community.
Earlier this month, eksummers620 tapped Ensco as a particularly enticing energy play: "[F]or feeding our oil addiction: offshore drilling, and, most notably, deepwater offshore drilling."
Over the next five years, in fact, Ensco is expected to grow its bottom line at a solid rate of 16% annually. That's faster than competitors Diamond Offshore (7%) and Noble (12%), let alone Transocean's expected average decline of 7%.
CAPS All-Star Babachrono elaborates on the Ensco bull case:
They have a solid balance sheet and are just starting to realize synergies from their recent acquisition. Their dividend payout % is a little high, but I think that will correct itself as the merger wraps up. Despite the desire for clean energy, we're not going to stop needing drilling companies anytime soon. They have a huge amount of rigs and are the second largest. Looking for them to hit street price targets near $70 in about 18 months.
What do you think about Ensco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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