Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas driller Unit Corp. (NYSE:UNT) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Unit facts

Headquarters (founded)

Tulsa, Oklahoma (1963)

Market Cap

$1.23 billion

Industry

Oil and gas drilling

TTM Revenue

$1.38 billion

Management

President/CEO Larry Pinkston

Co-Founder/Director King Kirchner

Return on Equity (average, last three years)

26.3%

Competitors

Nabors Industries (NYSE:NBR),

Helmerich & Payne (NYSE:HP)

CAPS members bullish on UNT also bullish on:

Chesapeake Energy (NYSE:CHK),

Vale (NYSE:RIO)

CAPS members bearish on UNT also bearish on:

First Solar (NASDAQ:FSLR),

Citigroup (NYSE:C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 361 of the 366 All-Star members who have rated Unit -- or 99% -- believe the stock will outperform the S&P 500 going forward. These bulls include beichenlaub1 and MikeMark, both of whom are ranked in the top 20% of our community.

Late last month, beichenlaub1 highlighted two big reasons why Unit is a buy: "OIL, OIL, OIL........and it is undervalued."

In a pitch from earlier in December, MikeMark elaborates on that reasoning. Below is a small sample, but be sure to check out the entire pitch here:

Unit Corp's proved resources are currently booked at $1.9B. For every $1.00 you spend on the company you are buying between $1.00 and $1.64 just in proven resources, not including the value of drilling rigs, drilling services income or exploration for and purchase of new resources.

… The biggest beauty of the whole thing is that we are talking about a resource that people will not stop using. They may reduce it some, but people who are saving money by not going places and doing things are staying home and staying warm! This is a commodity that is significantly less expensive than electricity per [British thermal unit]. …

Here's the real kicker- the founding family started buying shares at $32! So far they've purchased about $4MM worth on the open market that have shown up. I'm guessing we'll see more.

What do you think about Unit, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started. 

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