10/04/2012

5-Star Stocks Poised to Pop: Oceaneering International

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil-field services specialist Oceaneering International (NYSE: OII  ) has earned a coveted five-star ranking.

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

Oceaneering International facts

Headquarters (Founded) Houston (1965)
Market Cap $5.12 billion
Industry Oil and gas equipment and services
Trailing-12-Month Revenue $2.12 billion
Management CEO M. Kevin McEvoy (since May 2011)
CFO W. Cardon Gerner (since August 2011)
Return on Equity (Average, Past 3 Years) 16.5%
Cash/Debt $166 million / $0
Dividend Yield 1.3%

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 717 members who have rated Oceaneering believe the stock will outperform the S&P 500 going forward. These bulls include All-Star useless33 and mpdelbuono.

Earlier this month, useless33 listed a few of Oceaneering's positives: "No debt, high margin, shareholder-friendly company. New CEO is an unknown as the fearless leader but has been with the company since they were diving with stone robots."

In fact, Oceaneering boasts $166 million in cash on its balance sheet with zero debt. Meanwhile, industry peers like Cameron (NYSE: CAM  ) , Halliburton (NYSE: HAL  ) , and FMC Technologies (NYSE: FTI  ) sport debt-to-equity ratios of 0.34, 0.31, and 0.35, respectively.

CAPS member mpdelbuono elaborates on the Oceaneering bull case:

Oil demand is about to go through the roof with the Saudi Aramco mess. To counter that I expect other companies to be expanding their drilling, which should put [Oceaneering] on a fast-track to growth. Balance sheet looks good, and a competent management team to boo[t]. I like where this is headed.

What do you think about Oceaneering International, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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