Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore drilling giant Transocean (NYSE: RIG) has earned a coveted five-star ranking.

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

Transocean facts

Headquarters (Founded)

Vernier, Switzerland (1953)

Market Cap

$22.2 billion


Oil and gas drilling

Trailing-12-Month Revenue

$10.15 billion


CEO Steven Newman (since 2010)

CFO Ricardo Rosa (since 2009)

Return on Equity (Average, Past 3 Years)



$4.67 billion / $12.86 billion


Nabors Industries (NYSE: NBR)

Pride International (NYSE: PDE)

Weatherford International (NYSE: WFT)

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

On CAPS, 98% of the 6,178 members who have rated Transocean believe the stock will outperform the S&P 500 going forward. These bulls include Jajimon and dumberthanafool.

Just last week, Jajimon highlighted Transocean as a slick selection:

The stock has been beaten down with the BP oil spill and has not fully recovered its previous ground. Over the past 2 years, artificially low oil prices have reduced exploration and investment by the majors, but with oil over $90, pent-up investment demand will be released.

While Transocean has bounced more than 60% from its spill-induced lows in June, many in our community believe it's still too cheap to ignore. Currently, the stock even trades at a forward P/E (9.8) discount to drilling foes Nabors (10.2), Pride (12.0), and Weatherford (17.8), as well as oil service rivals like Halliburton (NYSE: HAL) (14.5) and Schlumberger (NYSE: SLB) (21.6).

In a reply pitch from two days ago, dumberthanafool elaborated:

I'm not betting the farm on it, but I just think the "secular" (overused term alert) growth in the need for deepwater drilling services in the next ten years, as oil production from conventional sources continues to decline, will be a rising tide to lift all ships in this industry. And if I am correct that [Transocean's] Gulf legal risk is overblown it will be a particularly large gainer, as its competitive position is otherwise one of the strongest. We shall see though. It is indeed one of those things as to which I will only know the answer in a year or three.

What do you think about Transocean, 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 Transocean. Try any of our Foolish newsletter services free for 30 days.

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