Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract driller Diamond Offshore Drilling (NYSE:DO) has earned a respected four-star ranking.

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

Diamond Offshore facts

Headquarters (Founded)

Houston (1989)

Market Cap

$13.99 billion

Industry

Oil and gas drilling

Trailing-12-Month Revenue

$3.64 billion

Management

CEO Lawrence Dickerson (since 2008)
CFO Gary Krenek (since 1998)

Return on Equity (Average, Past 3 Years)

40%

Cash / Debt

$251.7 million / $998.6 million

Competitors

Transocean (NYSE:RIG)
Noble (NYSE:NE)
Nabors Industries (NYSE:NBR)

CAPS Members Bullish on DO Also Bullish on

Vale (NYSE:VALE)

CAPS Members Bearish on DO Also Bearish on

Starbucks (NASDAQ:SBUX)
Amazon.com (NASDAQ:AMZN)

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

On CAPS, 98% of the 1,822 members who have rated Diamond Offshore believe the stock will outperform the S&P 500 going forward. These bulls include All-Star toolboy2, who is ranked in the top 2% of our community, and rlvanegdom.

Late last month, toolboy2 tapped Diamond Offshore as a Fool's best friend:

Is there such a thing as black diamonds? Oh yes! This gem of the crude type has kick butt profit margins … and rockin investment returns (ROE=39.7%). Only drawback is that they carry a little more debt than I would normally prefer, but it's not out of hand.

In an earlier pitch, rlvanegdom helped our community dig even deeper. Here's an excerpt:

Since I am also concerned about increasing inflation in the future I want to hold a healthy mix of natural resource stocks and hard assets going forward. [Diamond Offshore] provides contract drilling services to the oil industry on a global basis and is involved in deepwater drilling which will become more important in the future. [Diamond Offshore] provides most of its services on a lease basis which in many cases is long term, therefore their income is more stable than the price of oil although their stock price tends to fluctuate with the price of oil which will have a major effect on their stock price. This stock and industry is not for those with a weak stomach although it is somewhat more stable than some of their peers.

What do you think about Diamond Offshore, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Starbucks and Amazon are both Motley Fool Stock Advisor picks. The Fool owns shares of Starbucks. Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.