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Strength Seen in Transocean (RIG): Can Its 6.9% Jump Turn into More Strength?
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Transocean (RIG - Free Report) shares soared 6.9% in the last trading session to close at $5.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31.4% gain over the past four weeks.
Transocean stock extended its rally for the third straight day, driven by optimism over oil prices spurred by the potential demand boost from the easing of coronavirus restrictions in China. The recent strength in crude prices (at around $75 a barrel) and robust demand for oilfield services has lifted the offshore drilling space and contributed to the share price movement in Transocean. Last week’s announcement of backlog additions to the tune of $488 million is also having a positive effect on the company.
This offshore oil and gas drilling contractor is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $643.73 million, down 4.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Transocean, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RIG going forward to see if this recent jump can turn into more strength down the road.
Transocean belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Precision Drilling (PDS - Free Report) , closed the last trading session 4.7% higher at $77.01. Over the past month, PDS has returned 2.9%.
Precision Drilling's consensus EPS estimate for the upcoming report has changed +6.3% over the past month to $2.41. Compared to the company's year-ago EPS, this represents a change of +247.9%. Precision Drilling currently boasts a Zacks Rank of #2 (Buy).
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Strength Seen in Transocean (RIG): Can Its 6.9% Jump Turn into More Strength?
Transocean (RIG - Free Report) shares soared 6.9% in the last trading session to close at $5.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31.4% gain over the past four weeks.
Transocean stock extended its rally for the third straight day, driven by optimism over oil prices spurred by the potential demand boost from the easing of coronavirus restrictions in China. The recent strength in crude prices (at around $75 a barrel) and robust demand for oilfield services has lifted the offshore drilling space and contributed to the share price movement in Transocean. Last week’s announcement of backlog additions to the tune of $488 million is also having a positive effect on the company.
This offshore oil and gas drilling contractor is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $643.73 million, down 4.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Transocean, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RIG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Transocean belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Precision Drilling (PDS - Free Report) , closed the last trading session 4.7% higher at $77.01. Over the past month, PDS has returned 2.9%.
Precision Drilling's consensus EPS estimate for the upcoming report has changed +6.3% over the past month to $2.41. Compared to the company's year-ago EPS, this represents a change of +247.9%. Precision Drilling currently boasts a Zacks Rank of #2 (Buy).