Portfolio Grader currently ranks Transocean Ltd (NYSE:RIG) a Strong Sell. The approach to investing incorporated in this analytical tool evaluates and ranks nearly 5,000 stocks each week from a fundamental and quantitative perspective. RIG has maintained this ranking for the last month. The Strong Sell recommendation for Transocean Ltd is the conclusion of a process of analysis that is proprietary which generated results that were below average in 6 areas: an economic sector ranked below average in attractiveness, an industry group rated below average in attractiveness, a ranking in its sector group that is in the bottom eighth, ranking in its industry group that is in the bottom eighth, analytical scores that are well below average, and a numerical calculation of risk/reward that is unattractive.
RIG is classified as a component of the 12 company Contract Drilling GICS industry group, which is part of the 172 company GICS Industrial Services sector. RIG has a market value of $4.5 billion which is in the top half of its industry group RIG is currently ranked by Portfolio Grader at number 12 within the 12 companies in this industry group.
The Industrial Services sector is ranked number 20 among the 20 sectors in the Portfolio Grader universe putting it as the least attractive sector of all the GICS sectors. The Contract Drilling industry group is ranked 128 among the 129 industry groups within the GICS sectors, placing it well below-average in terms of the Proprietary Quantitative Score scoring system.
Transocean has achieved below-average scores in 7 of the 8 fundamental areas evaluated by Portfolio Grader in the ranking of company stocks.
RIG's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are well below average. Scores for visibility of earnings are a source of great concern with a ranking for earnings revisions, earnings surprises and earnings momentum that are worse than average. RIG's metrics for cash flow and return on equity are markedly worse than its industry group average. Based on these fundamental scores, Transocean places in the bottom quartile of the industry group.
The Proprietary Quantitative Score is used by Portfolio Grader to view RIG's shares from the aspect of risk/reward. This exclusive scoring system evaluates the relative value of the company's shares based on the recent $11.32 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, RIG currently scores well below-average in its industry group compared to its peers.
Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.