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5-Star Stocks Poised to Pop: Seadrill

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore driller Seadrill (NYSE: SDRL  ) has earned a coveted five-star ranking.

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

Seadrill facts

Headquarters (Founded) Hamilton, Bermuda (1972)
Market Cap $14.3 billion
Industry Oil and gas drilling
Trailing-12-Month Revenue $4.35 billion

CEO Alf Thorkildsen (since 2008)

CFO Esa Ikaheimonen (since 2010)

Return on Capital (Average, Past 3 Years) 6.3%
Cash/Debt $528 million / $9.7 billion
Dividend Yield 9.9%

Ensco (NYSE: ESV  )

Noble (NYSE: NE  )

Transocean (NYSE: RIG  )

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

On CAPS, 99.6% of the 475 members who have rated Seadrill believe the stock will outperform the S&P 500 going forward. These bulls include artmuseum and TurnKeyOilStocks.

A few months ago, artmuseum tapped Seadrill as a particularly well-managed opportunity:

SDRL's ace up its sleeve is charismatic John Fredriksen, Chairman, Pres. ... His presence enables low borrowing costs, also accelerated growth combined with generous cash dividends. What more can we expect from a NYSE listed management/investment?

In fact, Seadrill currently boasts a tempting dividend yield of 9.9%. That's higher than that of rivals like Ensco (2.9%), Noble (1.5%), and Transocean (5.8%).

CAPS member TurnKeyOilStocks elaborates on the bargain opportunity:

At current prices, investors have the opportunity to load up on a safe investment that will offer large returns. There is no logical explanation for the recent drop in price other than a sell-off in the market and commodity price drops. ... This should prove to be a great investment both long and short term. The stock is now trading with a P/E under 7.

What do you think about Seadrill, 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!

Interested in another easy way to track Seadrill? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Ensco, Noble, and Transocean. 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.

Read/Post Comments (1) | Recommend This Article (16)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 14, 2011, at 12:17 PM, artmuseum wrote:

    An excellent summary.

    Note under management you list the Pres in Bermuda.

    This fool suggests you add in FIRST place

    Chairman John Fredriksen's name.

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Related Tickers

10/21/2016 4:01 PM
SDRL $2.31 Down -0.04 -1.70%
Seadrill CAPS Rating: ***
ESV $8.90 Down -0.05 -0.56%
Ensco CAPS Rating: *****
NE $5.97 Down -0.04 -0.67%
Noble CAPS Rating: ****
RIG $10.50 Down -0.09 -0.85%
Transocean CAPS Rating: ****