Why Transocean (RIG) Outpaced the Stock Market Today
In the latest market close, Transocean (RIG) reached $5.77, with a +1.05% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 1.12%.
Shares of the offshore oil and gas drilling contractor have depreciated by 10.08% over the course of the past month, underperforming the Oils-Energy sector's loss of 2.82% and the S&P 500's gain of 2.5%.
The investment community will be paying close attention to the earnings performance of Transocean in its upcoming release. The company's upcoming EPS is projected at -$0.22, signifying a 55.1% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $771.5 million, indicating a 23.44% increase compared to the same quarter of the previous year.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5% lower. Transocean is currently a Zacks Rank #3 (Hold).
Looking at valuation, Transocean is presently trading at a Forward P/E ratio of 35.06. This expresses a premium compared to the average Forward P/E of 11.62 of its industry.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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
