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Transocean (RIG) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Transocean (RIG - Free Report) closed at $5.04, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.23% gain on the day. Elsewhere, the Dow gained 0.37%, while the tech-heavy Nasdaq added 0.07%.

The offshore oil and gas drilling contractor's shares have seen a decrease of 16.3% over the last month, not keeping up with the Oils-Energy sector's loss of 2.01% and the S&P 500's gain of 5.3%.

Market participants will be closely following the financial results 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. At the same time, our most recent consensus estimate is projecting a revenue of $771.5 million, reflecting a 23.44% rise from the equivalent quarter last year.

Any recent changes to analyst estimates for Transocean should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5% lower within the past month. At present, Transocean boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Transocean is currently being traded at a Forward P/E ratio of 30.58. This denotes a premium relative to the industry's average Forward P/E of 11.43.

The Oil and Gas - Drilling industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 214, this industry ranks in the bottom 16% of all industries, numbering over 250.

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.

To follow RIG in the coming trading sessions, be sure to utilize Zacks.com.


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