There are many investors in the market looking for the next best opportunities so they can start 2025 on a strong note, giving them the peace of mind to pursue some more aggressive plays in the market later. and except with available capital. Today, Goldman Sachs analysts will connect the dots in what they say 2025 Macro Outlook Report And potentially the best game Energy field has been tracked by Energy Select Sector SPDR Fund NYSEARCA: XLE.
As more market participants realize that oil prices offer some of the best—if not the best—potential in the commodity space today, investors need to start drilling into the sector and find out. Which industry makes the most sense here. As for drilling, most of the upside seems to be focused on oil drilling stocks, which can be tracked by it. VanEck Oil Services ETF NYSEARCA: OIH.
However, there is one particular drilling service provider with a wider footprint in international markets and one that already shows demand to increase in 2025. Today’s investors will have access to almost 100% put up. Transocean Ltd. shares of NYSE: RIG For the coming months, stocks worth watching for those ready to see their wealth mix this year.
Global trends point to higher demand for oil
Transocean Today
01/15/2025 to 03:58 PM Eastern
- 52-week range
- $3.40
▼
$6.88
- Price target
- $5.94
Before investors can delve into the finer details of Transocean and justify such aggressive growth, they should first understand what is going on behind the scenes in the oil world. Looking at demand trends, there isn’t much to it right now, but the data shows a completely different world for the coming quarter.
The world’s two largest economies, the United States and China, are now shifting their business cycles to one of the main drivers of oil prices in the coming months. This is the reason why Goldman Sachs has decided to focus in its report Manufacturing stock and oil for its recommendations.
as Manufacturing PMI The report showed an unexpected increase in new orders for December 2024, suggesting that many industries expect to see higher export demand in 2025. Then, in China, the Caixin manufacturing PMI just reported its third consecutive monthly expansion, not to mention above-expected import and export numbers.
Given that China is roughly 40% of global oil demandTraders are sure to gear up for the upcoming surge. No wonder Warren Buffett decided to buy up to 29% Occidental Petroleum Company NYSE: Oxy Over the past few quarters, reiterating the current outlook for the energy sector, which is on the bullish side.
Hedge funds have also decided to start accumulating some oil futures positions, but here’s why transocean stocks are the best pick. Being in the drilling services sector, this company is set up to pay before anyone else when oil prices rise and production demand comes back online, and that’s where the upside potential comes in.
Breaking the deal: Transocean stocks’ upside potential
As of today, Transocean stock is trading at a low 59% of its 52-week highThat means the potential downside is relatively priced right now, giving investors a largely profitable risk-to-reward ratio to dominate their portfolios in 2025. Now, there are some fundamental factors that will play into the stock’s future.
Transocean stock forecast today
$5.94
Up 38.89%catch up
Based on 10 analyst ratings
| High forecast | $8.00 |
|---|---|
| Average forecast | $5.94 |
| Less predictable | $4.50 |
Through December 2024, Transocean Management announced a new ultra-deepwater drillship contract. Priced up to $111 million. This new addition means two things for investors; First, it signals that demand is returning and points to demand customers preparing themselves ahead of a spike in oil prices.
Second, it adds to an already significant $9.3 billion backlog, which Latest quarterly earnings presentationwill turn into revenue over the next three years. Now, considering that Transocean is only a $3.5 billion company, this backlog will turn the company’s future sales into a huge discount in terms of price-to-sales (P/S) ratio.
This is also the reason why Wall Street analysts are ready to predict $0.02 in earnings per share (EPS) 12 months from now. While that may not seem like much, it’s a significant increase from today’s net loss of $0.04 per share. Additionally, investors should note that backlog assumptions may not be built into these forecasts.
Other analysts may have priced this potential, however, such as from Susquehanna. These analysts decided to reiterate their positive rating on the stock, this time at A $6.50 a share price target On Transocean stock, calls for as much as 63.3% above where the stock trades today.
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