Transocean Ltd (RIG): Today's Featured Basic Materials Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Transocean ( RIG) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.5%. By the end of trading, Transocean rose $1.11 (2.5%) to $46.38 on average volume. Throughout the day, 4.4 million shares of Transocean exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in a price between $44.67-$46.41 after having opened the day at $45.08 as compared to the previous trading day's close of $45.27. Other companies within the Basic Materials sector that increased today were: Lone Pine Resources ( LPR), up 18.2%, USEC ( USU), up 13.7%, Solitario Exploration & Royalty ( XPL), up 12.9%, and Ossen Innovation ( OSN), up 11.6%.
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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. Transocean has a market cap of $16.23 billion and is part of the energy industry. Shares are up 17.6% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Transocean a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Transocean as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

On the negative front, Geokinetics ( GOK), down 22.4%, United States Antimony Corporation ( UAMY), down 13.2%, Kimber Resources ( KBX), down 12.7%, and Voyager Oil & Gas ( VOG), down 10.4%, were all laggards within the basic materials sector with Royal Dutch Shell ( RDS.B) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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