Transocean (RIG) Laps the Stock Market: Here's Why
The latest trading session saw Transocean (RIG) ending at $7.77, denoting a +1.7% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.39%.
Prior to today's trading, shares of the offshore oil and gas drilling contractor had lost 6.6% over the past month. This has lagged the Oils-Energy sector's loss of 4.35% and the S&P 500's loss of 3.39% in that time.
The investment community will be paying close attention to the earnings performance of Transocean in its upcoming release. It is anticipated that the company will report an EPS of -$0.21, marking a 250% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $736.19 million, up 0.85% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.80 per share and revenue of $3.02 billion. These totals would mark changes of +13.98% and +12.11%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Transocean. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 3.06% lower. Right now, Transocean possesses a Zacks Rank of #4 (Sell).
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
