Traders Could Strike It Big With This Offshore Driller

by Sam Collins | July 19, 2013 1:16 am

Atwood Oceanics (ATW[1]) — This offshore drilling company derives most of its revenue from international operations. The company is taking an aggressive approach to building its fleet and focuses on premium assets. ATW’s day rates are high, and they just extended an option to build a third ultra-deep-water rig.

S&P estimates earnings of $5.22 per share in the current fiscal year, ended in September, versus $4.14 last year, and expects $6.66 next year. A Jeffries analyst recently reiterated a “buy” rating on the stock and raised his target to $64 from $60.

ATW just broke from a quadruple-top following a period of high accumulation. MACD is on a buy signal and the target is $66.

ATW Chart
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