Transocean Ltd (RIG): Today's Featured Energy 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 Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.4%. By the end of trading, Transocean rose $0.55 (1.1%) to $49.29 on average volume. Throughout the day, 3,025,204 shares of Transocean exchanged hands as compared to its average daily volume of 2,904,800 shares. The stock ranged in a price between $48.66-$49.52 after having opened the day at $48.95 as compared to the previous trading day's close of $48.74. Other companies within the Energy industry that increased today were: Houston American Energy Corporation ( HUSA), up 17.2%, Synergy Resources Corporation ( SYRG), up 10.8%, Recovery Energy ( RECV), up 8.7% and New Concept Energy ( GBR), up 7.8%.
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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, as well as logistics services. Transocean has a market cap of $17.4 billion and is part of the basic materials sector. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. The company has a P/E ratio of 17.7, below the S&P 500 P/E ratio of 17.7. Shares are up 9.1% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate Transocean a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Transocean as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the negative front, Cubic Energy ( QBC), down 7.7%, Quicksilver Resources ( KWK), down 6.7%, Harvest Natural Resources ( HNR), down 6.5% and Penn Virginia Corporation ( PVA), down 5.8% , were all laggards within the energy industry with Petroleo Brasileiro SA Petrobras ( PBR.A) being today's energy industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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