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5-Star Stocks Poised to Pop: Atwood Oceanics

Based on the aggregated intelligence of 180,000-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 (1968)
Market Cap $3.0 billion
Industry Oil and gas drilling
Trailing-12-Month Revenue $712.5 million
Management CEO Robert Saltiel (since 2009)
CFO Mark Mey (since 2010)
Return on Equity (average, past 3 years) 17.8%
Cash/Debt $79.0 million / $657.7 million
Competitors Diamond Offshore Drilling
Nabors Industries

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 2,387 members who have rated Atwood believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star dockofthebay, succinctly summed up the opportunity for our community:

There is plenty of risk involved in ordering the construction of drilling rigs, whether jackups or deep water rigs, without contracts from oil exploration and production companies in hand before shipyard work begins. Still, management of Atwood seems to be savvy in knowing what and when to build. ... As long as they keep expanding their rig count cautiously (especially the deep water rigs) and oil prices don't plunge much lower, I'm a buyer at this level.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Atwood may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Atwood and Transocean. Motley Fool newsletter services have recommended buying shares of Atwood. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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Brian D. Pacampara, CFA

Brian has been writing for The Fool since 2006, and currently covers consumer goods stocks. He has a B.A. from Western University (Ontario, Canada) and holds the CFA designation.

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Related Tickers

5/24/2016 9:42 AM
ATW $10.71 Down -0.06 -0.56%
Atwood Oceanics CAPS Rating: *****