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Transocean (RIG) Stock Sinks As Market Gains: Here's Why
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The most recent trading session ended with Transocean (RIG - Free Report) standing at $6.53, reflecting a -0.15% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.11% gain on the day. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.
The offshore oil and gas drilling contractor's shares have seen an increase of 26.99% over the last month, surpassing the Oils-Energy sector's gain of 10.33% and the S&P 500's gain of 0.48%.
The investment community will be closely monitoring the performance of Transocean in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.09, showcasing a 76.32% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $779.67 million, up 20.13% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.09 per share and a revenue of $3.68 billion, representing changes of +109.38% and +28.41%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Transocean. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 16.44% lower. Transocean presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Transocean is currently trading at a Forward P/E ratio of 75.05. For comparison, its industry has an average Forward P/E of 15.54, which means Transocean is trading at a premium to the group.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 16% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Transocean (RIG) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Transocean (RIG - Free Report) standing at $6.53, reflecting a -0.15% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.11% gain on the day. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.
The offshore oil and gas drilling contractor's shares have seen an increase of 26.99% over the last month, surpassing the Oils-Energy sector's gain of 10.33% and the S&P 500's gain of 0.48%.
The investment community will be closely monitoring the performance of Transocean in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.09, showcasing a 76.32% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $779.67 million, up 20.13% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.09 per share and a revenue of $3.68 billion, representing changes of +109.38% and +28.41%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Transocean. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 16.44% lower. Transocean presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Transocean is currently trading at a Forward P/E ratio of 75.05. For comparison, its industry has an average Forward P/E of 15.54, which means Transocean is trading at a premium to the group.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 16% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.