Transocean Inc. (RIG) Buy, Sell or Hold

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Transocean Inc. (RIG)

5.04

-0.25 (4.73%)

as of Jun 24, 2026, 8:00:00 pm Market Open.

51 watching

Investor Insights

Jun 24, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Transocean Inc. (RIG-N) has garnered a mixed yet cautiously optimistic outlook from various experts. The company boasts good free cash flow, favorable contracts, and a dominant position in the industry, as it was the only major firm that did not file for bankruptcy during the COVID-19 pandemic. However, concerns about its high debt levels have been raised, particularly after a recent earnings report indicated lower-than-expected cash flow and debt ratios. Even amidst these challenges, there is a belief that demand for oil and drilling services will grow significantly over the coming decades, especially as U.S. shale production stabilizes. Despite a JPM downgrade due to exposure concerns with Petrobras, some experts express a willingness to invest in RIG, particularly after prices potentially decrease in the near term. The broader macroeconomic outlook appears favorable for the drilling sector, though short-term volatility may present challenges.

Consensus

Mixed

Valuation

Fair Value

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TOP PICK

Operator of the British Petroleum (BP-N) drilling rig that caused all the problems in the Gulf. Earnings estimates have come down about 15% but stock price has come down 40%. Trading at 7-8 times earnings.

TOP PICK

This is the rig that was leased by BP. Has been absolutely crushed since the well blowout. Service companies are indemnified by the oil companies, which most people don’t know. They are really down because of the drilling moratorium. If that ends after 6 months, the stock is paying 7% and trading at 4x. Risk/reward is pretty compelling.

DON'T BUY

With the explosion/oil spill, she thought that if it could be contained within a relatively short period of time, stock reaction was overblown. As time passed, there were questions about future deep water drilling so she sold her holdings.

PARTIAL BUY

All companies that had anything to do with British Petroleum and the oil spill have been oversold. When and if the oil spill is under control, there should be a good rally of all the stocks. Good time to start picking away at it.

SELL

Had a major, major break. Should have sold when it broke the 200 day moving average.

TOP PICK

Sign multiyear contracts with production companies but still moves with the commodity prices. Have 140 drilling rigs with a backlog of about 5 years of revenues. Trades at about 9X earnings and should grow 12%-14% in the near term.

TOP PICK

Drilling services to oil/gas industry. Leader in ultra deep-water space. Likes demand/supply fundamentals. $31 billion backlog on a revenue base of $11 billion. Backlog gives very strong earnings visibility. Generating more free cash flow than it can use so recently announced a dividend policy giving a 3.5% yield that should be sustainable.

PAST TOP PICK

(A Top Pick Nov 8/12. Up 32.8% excluding dividends.) Offshore drilling. Has about $40 billion backlog and about 6 years of revenue. Will probably earn about $13 this year and will be down a little bit next year along with the sector.

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BUY ON WEAKNESS

This is the leader in terms of the complex semi-submersibles for deep shore applications. If you're comfortable with the currency risk, it looks like a good name to hold. Pretty much of a monopoly on the rigs and are booked years in advance. If it drops after the earnings, pick up more.

BUY

Deepwater oil drilling play. Have a lot of growing opportunities in the deep waters off Brazil. Day rates have held up relatively strongly.

PAST TOP PICK

(A Top Pick March 25/08. Down 47.41%.) Largest offshore driller in the world. This is where the action will be when things heat up. Right now it's a bit early.

DON'T BUY

Deep sea driller. Very well run. As oil prices came down and demand for drilling started to ebb, stock price dropped. No dividend. Future earnings are looking a little weaker than previous. $25-$30 range would look attractive if you've got the patience for the cycle to turn.

DON'T BUY

(Market Call Minute.) You have to wait for energy to turn around.

TOP PICK

Largest deepwater driller globally. Have about 140 rigs. Will earn in the neighbourhood of $14.50 next year. Have over a $40 billion backlog, which represents 5 years of revenue.

DON'T BUY

There is a very good fundamental case to be made for offshore drillers. If the U.S. Congress allows offshore drilling, these companies are in a great spot. Technically this group has been badly broken in the last few weeks. He would like to see it trade above the 50-day and 200-day moving averages.

Showing 61 to 75 of 87 entries

Most Recent Experts

Brendan Caldwell

Caldwell Securities

Liz Young, Head of investment strategy at SoFi

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Stephen Weiss, Founder, Short Hills Capital Partners

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Joe Terranova

Virtus Investment Partners

Paul Harris, CFA

Harris Douglas Asset Management

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Transocean Inc. (RIG)