Why Atwood Oceanics Is Poised to Outperform

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 and see what CAPS investors are saying about the stock right now.

Atwood facts

Headquarters (Founded)

Houston (1968)

Market Cap

$3.1 billion

Industry

Oil and gas drilling

Trailing-12-Month Revenue

$787.4 million

Management

CEO Robert Saltiel (since 2009)
CFO Mark Mey (since 2010)

Return on Equity (Average, Past 3 Years)

18%

Cash/Debt

$77.9 million / $838.3 million

Competitors

Diamond Offshore (NYSE: DO  )
Nabors Industries
(NYSE: NBR  )
Transocean
(NYSE: RIG  )

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

On CAPS, 99% of the 2,383 members who have rated Atwood believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Growthhound, nicely summed up the bull case for our community:

[Atwood] is a conservative well managed company. They spend [their] cash wisely. That is why I am not concerned that they do not pay a dividend. They have borrowed money wisely while interest rates are low to purchase multiple high performance drilling rigs that will lease at 500K per day. They seem to have no problems securing long term leasing contracts for their new or older rigs to large well known established oil companies. ... Their balance sheet has always been excellent. There is no doubt in my mind that they will have a huge increase in revenues and earnings when their new rigs come online this year and next year. If they have no major changes in management it would not surprise me that they will outperform the market in the next 5 years and beyond.

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. Of course, despite its five-star rating, Atwood may not be your top choice.

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