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Transocean (RIG) Dips More Than Broader Markets: What You Should Know

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Transocean (RIG - Free Report) closed the most recent trading day at $8.45, moving -1.05% from the previous trading session. This change lagged the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the offshore oil and gas drilling contractor had gained 37.74% over the past month, outpacing the Oils-Energy sector's gain of 8.02% and the S&P 500's gain of 5.14% in that time.

Transocean will be looking to display strength as it nears its next earnings release, which is expected to be July 31, 2023. In that report, analysts expect Transocean to post earnings of -$0.12 per share. This would mark a year-over-year decline of 20%. Our most recent consensus estimate is calling for quarterly revenue of $724.38 million, up 0.33% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.55 per share and revenue of $3.04 billion. These totals would mark changes of +40.86% and +12.86%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Transocean. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 10.4% lower. Transocean is holding a Zacks Rank of #4 (Sell) right now.

The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% 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.

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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