Based on the aggregated intelligence of 170,000-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

$8.9 billion


Oil and gas drilling

Trailing-12-Month Revenue

$3.37 billion


CEO Lawrence Dickerson (since 2008)

CFO Gary Krenek (since 1998)

Return on Equity (average, past 3 years)


Dividend Yield



Transocean (NYSE: RIG)

Noble (NYSE: NE)

Nabors (NYSE: NBR)

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

On CAPS, 98% of the 2,001 members who have rated Diamond Offshore believe the stock will outperform the S&P 500 going forward. These bulls include umps15 and KnockoutMouse.

Late last month , umps15 tapped Diamond Offshore as a particularly slick pick: "good forward p/e at about 10, poised to pop once fears of the BP (NYSE: BP) disaster [subside], and drilling is returned to full strength."

2010 has certainly been a brutal year for Diamond Offshore investors, but with the Gulf of Mexico returning to at least some sense of normalcy, many Fools believe it's just a matter of time before the valuation does, too. Over the past year, shares of Diamond Offshore have been beaten down (-31%) more than rivals Noble (-14%), Nabors (0.8%), and Pride International (NYSE: PDE) (-3%), as well as those at the heart of disaster, BP (-21%) and Transocean (-16%).

CAPS All-Star KnockoutMouse drills deeper:

Our dependence on oil is not going away anytime soon, and the deep water is where the oil is. This is a great company. They have a fleet of very safe and modern deep-water rigs. They have been strategic with their upgrades and new rig purchases, they have been prudent with their cash and they have taken very good care of their shareholders.

What do you think about Diamond Offshore, 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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of 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 Motley Fool has a disclosure policy.