Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Transocean as such a stock due to the following factors:
- RIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $181.9 million.
- RIG traded 48,355 shares today in the pre-market hours as of 7:38 AM.
- RIG is up 5% today from Friday's close.
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More details on RIG:
Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services, as well as logistics services. The stock currently has a dividend yield of 5%. RIG has a PE ratio of 10.0. Currently there are 9 analysts that rate Transocean a buy, 2 analysts rate it a sell, and 12 rate it a hold.
The average volume for Transocean has been 2.6 million shares per day over the past 30 days. Transocean has a market cap of $16.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.99 and a short float of 2% with 1.96 days to cover. Shares are up 0.8% year to date as of the close of trading on Friday.
rates Transocean as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- TRANSOCEAN LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TRANSOCEAN LTD turned its bottom line around by earning $2.38 versus -$17.75 in the prior year. This year, the market expects an improvement in earnings ($3.96 versus $2.38).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 201.0% when compared to the same quarter one year prior, rising from -$304.00 million to $307.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 41.89% is the gross profit margin for TRANSOCEAN LTD which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.80% trails the industry average.
- You can view the full Transocean Ratings Report.