Back to top

Analyst Blog

Oil drilling equipment maker Cameron International Corp. (CAM - Analyst Report) recently received a supply contract from South Korea-based STX Offshore & Shipbuilding Co. Ltd. Per the contract, Cameron will provide an entire drilling equipment package to be used by a 12,000 foot ultra deepwater drillship

The deal, estimated at around $275 million, will be the first complete rig package by Cameron for a new drillship.

Cameron management highlights that this contract will strengthen the company’s business of providing complete drilling equipment packages for drillships. Prior to this contract, Cameron successfully delivered full equipment packages for jackup drilling rigs to TTS Energy.

Houston, Texas-based Cameron is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production, and transmission.  The company operates through three segments: Drilling & Production Systems; Valves & Measurement; and Process & Compression Systems.

The company stands to benefit from improving subsea activity levels in the near future. In this regard, Cameron has signed numerous subsea equipment deals with industry giants like BP plc (BP - Analyst Report), Petroleo Brasileiro S.A. or Petrobras (PBR - Analyst Report), Statoil ASA (STO - Analyst Report) and Chevron Corporation (CVX - Analyst Report).

Earlier this month, Cameron with Schlumberger Limited (SLB - Analyst Report) announced the formation of OneSubsea – a joint venture (JV) between the subsea units of both the companies to capitalize on the growing demand for deepwater drilling.

Shares of the company are fairly valued at current levels, considering the sensitivity of Cameron’s business to gas/oil price volatility, as well as exploration and production spending patterns, costs, geo-political risks, competition and the advent of new technologies.

Hence, we are maintaining our long-term Neutral recommendation on the stock. Cameron is currently a Zacks #3 Rank stock with a Hold rating over the next one to three months.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
STRATTEC SE… STRT 85.29 +6.29%
SUPER MICRO… SMCI 26.03 +6.29%
CENTURY ALU… CENX 26.33 +5.40%
TESLA MOTOR… TSLA 279.35 +3.58%
BAIDU ADS BIDU 221.59 +3.30%