Here's Why Transocean (RIG) Fell More Than Broader Market
Transocean (RIG) ended the recent trading session at $5.29, demonstrating a -1.86% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.
Prior to today's trading, shares of the offshore oil and gas drilling contractor had lost 13.76% over the past month. This has lagged the Oils-Energy sector's loss of 2.83% and the S&P 500's gain of 1.2% in that time.
The investment community will be paying close attention to the earnings performance of Transocean in its upcoming release. The company is expected to report EPS of -$0.22, up 55.1% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $771.5 million, showing a 23.44% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Transocean. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.67% downward. Transocean currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Transocean is presently trading at a Forward P/E ratio of 31.98. This expresses a premium compared to the average Forward P/E of 11.48 of its industry.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 232, finds itself in the bottom 8% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
