Warning: RIG is at high risk of performing badly

Transocean Ltd. (NYSE:RIG) has characteristics which have been historically associated with poor future stock performance. RIG is overpriced and has decelerating momentum when compared to other Energy stocks, to the point that it gets a Sell rating from our Quant rating system. Stocks rated Sell or worse by our Quant rating system have massively underperformed the S&P 500, as this article will describe.
The company has EV / EBIT (FWD) of 35.84 while the Energy sector median is 10.16.

The company has 1Y Price Performance of -38.19% while the Energy sector median is -3.55%.

Due to these factors our quant model has rated Transocean Ltd. as Sell and the company has an overall rank of 186 out of 1569 in the Energy sector. Compared to the S&P 500, stocks rated Sell or worse were down 20% on average per year over the last 10 years.

If you are looking for alternatives to Transocean Ltd. (NYSE:RIG) see our top rated Energy sector stocks by quant rating. Our top rated stocks have beaten the S&P 500 by 1300% over the last 10 years.
The Sell warnings are based on our Quant Ratings, a systematic quantitative model which generates Seeking Alpha’s Sell ratings. For information about Quant Ratings, backtesting and its limitations, please read more here.

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