Transocean (RIG) Registers a Bigger Fall Than the Market: Important Facts to Note
Transocean (RIG) closed the latest trading day at $5.59, indicating a -1.93% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.07%.
The offshore oil and gas drilling contractor's stock has dropped by 4.36% in the past month, falling short of the Oils-Energy sector's gain of 0.36% and the S&P 500's gain of 3.98%.
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 -$0.22, marking a 55.1% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $770.1 million, indicating a 23.22% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Transocean. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Transocean presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Transocean is currently being traded at a Forward P/E ratio of 33.25. Its industry sports an average Forward P/E of 11.73, so one might conclude that Transocean is trading at a premium comparatively.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 211, finds itself in the bottom 17% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
