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
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||$9.6 billion|
|Industry||Oil and gas drilling|
|Trailing-12-Month Revenue||$3.3 billion|
CEO Lawrence Dickerson (since 2008)
CFO Gary Krenek (since 1998)
|Return on Equity (average, past 3 years)||34.5%|
|Cash/Debt||$994.7 million / $1.5 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
A few months ago, SCmaverick96 tapped Diamond Offshore as a solid long-term opportunity: "I still believe it has room to grow after reading several reports of new rig development and gaining contracts in the gulf. ... It will take a few years but I'm looking for this stock to make it back on top again."
Over the next five years, in fact, Diamond Offshore is expected to grow its bottom line at a solid rate of 12.2% annually. That's faster than industry peers like Ensco International
CAPS member randyriv elaborates on the Diamond Offshore bull case:
A ridiculously cheap stock trading at ~11 times earnings. I suspect PEG ratio to be <1.0 vs some of the figures posted out there. Future comps will have a low hurdle to jump based on the revenue and earnings hit DO took for their Gulf rigs in 2010 as a result of the BP fiasco. DO has also made investments in new rigs, which could be a catalyst for future growth.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Diamond Offshore, Transocean, and Ensco. Try any of our Foolish newsletter services free for 30 days.