Is Transocean Ltd. (RIG) Standing Strong Amid Market Decline? - InvestingChannel

Is Transocean Ltd. (RIG) Standing Strong Amid Market Decline?

We recently published a list of 10 Firms Stand Strong Amid Market Decline. In this article, we are going to take a look at where Transocean Ltd. (NYSE:RIG) stands against other firms stand strong amid market decline.

The US stock market finished the day on a sour note anew amid the lack of fresh catalysts to spice up trading while investors repositioned their portfolios ahead of 2025.

On Monday, the Dow shed 0.97 percent or 418 points, while the S&P’s broad index decreased 0.95 percent or 56.48 points. Nasdaq Composite registered the biggest decline, down 1.19 percent or 235.24 points.

Despite losses, 10 companies managed to eke out gains, with those in the energy sector posting notable performance. Let’s explore why.

To come up with Monday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

Is Transocean Ltd. (RIG) Standing Strong Amid Market Decline? An aerial view of an oil rig with drillers in hard hats working on the platform.

Transocean Ltd. (NYSE:RIG)

Switzerland-based drilling firm Transocean Ltd. (NYSE:RIG) reported a 3.68-percent increase in its share prices on Monday to finish the day at $3.66 apiece.

Investors discounted news of a recently filed class action lawsuit against the firm alleging that Transocean made materially false and misleading statements about its business, operations, and prospects.

The lawsuit added that Transocean’s Discoverer Inspiration, an ultra-deepwater dual-activity drillship, and Development Driller III, its ultra-deepwater semi-submersible were considered non-strategic assets.

It also added that Transocean’s recorded asset valuations were overstated, and as a result, Transocean would take nearly twice the vessels’ sale price in impairment if sold.

Just recently, the company announced it has secured a multi-million deepwater drillship contract.

The estimated 270-day program is expected to commence in direct continuation of the rig’s firm term with Reliance and contribute approximately $111 million in backlog, excluding additional services.

Overall, RIG ranks 5th on our list of firms stand strong amid market decline. While we acknowledge the potential of RIG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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