Transocean (RIG) Beats Stock Market Upswing: What Investors Need to Know
Transocean (RIG) closed the latest trading day at $5.49, indicating a +1.29% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.43%.
Coming into today, shares of the offshore oil and gas drilling contractor had lost 14.78% in the past month. In that same time, the Oils-Energy sector lost 5.56%, while the S&P 500 gained 2.08%.
The upcoming earnings release of Transocean will be of great interest to investors. The company's upcoming EPS is projected at -$0.22, signifying a 55.1% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $771.5 million, indicating a 23.44% upward movement from the same quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Transocean. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5% decrease. Currently, Transocean is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Transocean is holding a Forward P/E ratio of 33.28. This signifies a premium in comparison to the average Forward P/E of 12.07 for its industry.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 12% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
