Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore drilling giant Transocean
With that in mind, let's take a closer look at Transocean's business and see what CAPS investors are saying about the stock right now.
Transocean facts
Headquarters (Founded) |
Vernier, Switzerland (1953) |
Market Cap |
$27.3 billion |
Industry |
Oil and gas drilling |
Trailing-12-Month Revenue |
$11.6 billion |
Management |
CEO Steven Newman (since March 2010) |
Return on Equity (Average, Past 3 Years) |
25.4% |
Cash/Debt |
$1.2 billion / $11.7 billion |
Competitors |
Diamond Offshore |
Key Customers |
BP |
Other Highly Rated Drilling Stocks |
Atwood Oceanics |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 5,528 members who have rated Transocean believe the stock will outperform the S&P 500 going forward. These bulls include All-Star vprtwatcher, who is ranked in the top 5% of our community, and mafine.
Just last month, vprtwatcher tapped the stock as an inexpensive bet on better times ahead:
Some patience might be needed here, but when the global economy gets back to "normal" growth the demand and price for oil will increase and drive demand for exploration infrastructure. Transocean is the global leader in rigs but currently unpopular and selling at very low multiples.
In a pitch from a few days earlier, mafine expands on the slick selection:
The market has been consistently undervaluing any stock that is related to oil, expecting that the recession will kill demand. But everything that I read indicates that demand for oil will quickly rise beyond the 87 million barrels per day that was the most ever [consumed] (in 2007). To find more oil, major companies have to turn to deep sea drilling, an area where [Transocean] is the world leader. It currently sells at a [forward PE] of about 8.
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