Why Transocean (RIG) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Transocean  (RIG) rose 0.68% to $38.31 in morning trading Thursday after a federal judge ruled on the offshore driller's responsibility in the Gulf of Mexico oil spill in 2010.

"BP's (BP)  conduct was reckless," U.S. District Judge Carl Barbier wrote in a decision in New Orleans federal court on Thursday. "Transocean's conduct was negligent. Halliburton's (HAL) conduct was negligent."

Barbier placed 67% of the blame with BP, 30% with Transocean and 3% with Halliburton.

Must Read: 50 Stocks Hedge Funds Love

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The decision could force BP to pay billions of dollars, according to Bloomberg.

More than 7 million shares of Transocean had changed hands as of 11:45 a.m., compared to the average volume of 5,084,450.

Separately, TheStreet Ratings team rates TRANSOCEAN LTD as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TRANSOCEAN LTD (RIG) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 two years. We feel that this trend should continue. During the past fiscal year, TRANSOCEAN LTD increased its bottom line by earning $3.88 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $3.88).
  • 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 91.2% when compared to the same quarter one year prior, rising from $307.00 million to $587.00 million.
  • 47.90% is the gross profit margin for TRANSOCEAN LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.21% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 52.88% to $636.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 27.28%.
  • You can view the full analysis from the report here: RIG Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

If you liked this article you might like

Baker Hughes Oil Rig Count Drops By 5

Baker Hughes Oil Rig Count Drops By 5

Constellation Brands, Universal Display: 'Mad Money' Lightning Round

Constellation Brands, Universal Display: 'Mad Money' Lightning Round

Don't Blame the Earnings: Cramer's 'Mad Money' Recap (Friday 11/17/17)

Don't Blame the Earnings: Cramer's 'Mad Money' Recap (Friday 11/17/17)

Victory Comes From Leadership: Cramer's 'Mad Money' Recap (Thursday 11/9/17)

Victory Comes From Leadership: Cramer's 'Mad Money' Recap (Thursday 11/9/17)

Patience Is Still a Virtue on Transocean

Patience Is Still a Virtue on Transocean