Trade-Ideas LLC identified Transocean ( RIG) 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 $169.2 million.
  • RIG traded 128,462 shares today in the pre-market hours as of 9:28 AM.
  • RIG is up 2.7% today from yesterday's close.

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More details on RIG:

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company primarily offers deepwater and harsh environment drilling services. The stock currently has a dividend yield of 4%. Currently there are no analysts that rate Transocean a buy, 10 analysts rate it a sell, and 8 rate it a hold.

The average volume for Transocean has been 13.7 million shares per day over the past 30 days. Transocean has a market cap of $5.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.56 and a short float of 30.5% with 9.77 days to cover. Shares are down 21.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Transocean as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has decreased to $648.00 million or 26.53% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TRANSOCEAN LTD has marginally lower results.
  • RIG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 47.68%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, TRANSOCEAN LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 30.8%. Since the same quarter one year prior, revenues fell by 29.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RIG's debt-to-equity ratio of 0.64 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that RIG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.03 is high and demonstrates strong liquidity.

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