Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian contract driller Precision Drilling Trust (NYSE:PDS) has earned a coveted five-star ranking.

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

Precision facts

Headquarters (founded)

Calgary, Canada (1951)

Market Cap

$1 billion


Oil and Gas Equipment and Services

Trailing-12-Month Revenue

$1.05 billion


CEO Kevin Neveu

CFO Douglas Strong

Return on Equity (average, last three years)



Schlumberger (NYSE:SLB)

Baker Hughes (NYSE:BHI)

CAPS Members Bullish on PDS Also Bullish on:

Chesapeake Energy (NYSE:CHK)


CAPS Members Bearish on PDS Also Bearish on:

Citigroup (NYSE:C)

General Electric (NYSE:GE)

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

Over on CAPS, some 98.5%  of the 642 All-Star members who have rated Precision believe the stock will outperform the S&P 500 going forward. These bulls include wheckster and JGus, both of whom are ranked in the top 7% of our community.

Just last week, wheckster wrote that Precision "has been drastically oversold, and its price is absurdly low." Our CAPS All-Star concludes: "Drilling oil will not go away any time soon. And drilling in North America is also a safe strategic bet that will no doubt return the investment."

In a pitch from last month, JGus lists the top 10 reasons why Precision is a long way from hitting its "peak." Below are the first five, but be sure to check out the full analysis here:

1. They are the largest land driller in North America. This gives them some significant advantages over their competitors.

2. They drill for both oil and natural gas.

3. I am a believer in Peak Oil. I don't know if it will happen in 1 year, 2 years, 5 years, 10 years, or 20 years, but at some point the world's demand for oil will outstrip its yearly production of oil. When that happens, the price of oil will skyrocket. ... The reserves in Canada and the US will become much more valuable and [Precision] will be paid a high premium to drill for it.

4. Natural gas is looking more and more like it will become the 'oil' of the future. It is viewed as a much cleaner fuel and we have vast reserves right within our border. There seems to be growing sentiment by governmental leaders to increase our use of it. This should cause natural gas prices to rise as greater demand for it builds.

5. They are a land driller. Land drilling is the safest, easiest, least costly way to drill.

What do you think about Precision Drilling, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Precision Drilling is a Motley Fool Global Gains recommendation, Chesapeake is an Inside Value pick, and Apple is a Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.