(Idea) Transocean Is Looking More And More Attractive
By: Jon Costello
Investors considering buying or increasing their stake in Transocean’s (RIG) stock should focus on three questions when reviewing quarterly results. First, is risk decreasing for shareholders? Second, will risk continue to decrease over the next few quarters? And third, will the company successfully navigate a potential oil supply glut in 2026?
If these questions can be answered in the positive, the shares are poised to offer returns greater than 100% over the next few years.
Transocean's impressive second-quarter results boost my confidence that increasing cash flow and debt reduction will steadily reduce shareholder risk over the coming quarters, and that the company should have no trouble making it through a glutted oil market in 2026. I therefore expect its shares to outperform, both on an absolute basis and relative to peers.