The drilling industry, a vital cog in the energy sector, has been experiencing a significant financial upswing. Last month, drilling businesses saw a remarkable 28.19% increase, a trend that is expected to continue, according to Tickeron's positive outlook. This article will delve into the financial analysis of these businesses, focusing on stock performance, market capitalization, and notable companies within the group.
Positive Outlook and Stock Performance
The drilling industry's stocks have a positive outlook today, backed by the MA50MA10 Indicator. The Stock Fear & Greed Index also supports this positive sentiment. Tickeron predicts a further increase of more than 4.00% within the next month with a likelihood of 74%. During the last month, the daily ratio of advancing to declining volumes was 1.8 to 1, indicating a bullish trend.
Three stocks in the group of tickers confirmed the positive outlook based on the MA50 indicator with average odds of 85%. These stocks are part of the group that includes notable companies such as Transocean Ltd (NYSE:RIG) and Diamond Offshore Drilling (NYSE:DO).
The average market capitalization across the group is 2.6B, with individual market caps ranging from 468M to 6.6B. Transocean Ltd (NYSE:RIG) holds the highest valuation in this group at 6.6B, while the lowest valued company is NR at 468M.
Price and Volume Growth
The average weekly price growth across all stocks in the group was 5.9%. For the same group, the average monthly price growth was 28.19%, and the average quarterly price growth was 3.73%. PDS experienced the highest price growth at 15.33%, while DO experienced the biggest fall at 0.59%.
The average weekly volume growth across all stocks in the group was 23.45%. For the same stocks of the group, the average monthly volume growth was 35.85% and the average quarterly volume growth was 54.49%.
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows:
Drilling Industry Overview
The drilling industry includes companies that provide onshore and offshore drilling services to the energy sector. Services are delivered on a contractual or per-fee basis. Customers of this industry include major and independent oil and gas companies. Strong oil demand could potentially boost contract fees. Helmerich & Payne, Inc., Transocean Ltd, and Patterson-UTI Energy, Inc. are among the major drilling companies in the U.S.
The drilling industry's financial performance has been impressive, with a 28.19% increase last month. The positive outlook, backed by the MA50MA10 Indicator and the Stock Fear & Greed Index, suggests that this trend is likely to continue.
HP's Bullish Uptrend: A Snapshot of Potential Growth"
Helmerich & Payne, Inc. (HP) has been making waves in the financial world with its recent performance. As of July 27, 2023, the company has been on a +5.11% uptrend, advancing for three consecutive days. This pattern is generally viewed as a bullish sign in the stock market, indicating strong momentum and potential for future growth.
Historical data further bolsters this positive outlook. In 232 out of 300 instances where HP's stock advanced for three days, the price continued to rise in the following month. This represents a success rate of approximately 77%, suggesting a high likelihood of a continued upward trend.
Investors should keep a close eye on HP, as this bullish trend could present lucrative opportunities. However, as with all investments, it's crucial to consider other market factors and conduct thorough research before making any decisions.
HP's recent performance paints a promising picture for the company's financial future. With a 77% chance of continued growth based on historical data, HP's stock is one to watch in the coming months.
RIG's Stochastic Oscillator: A Potential Bearish Signal
Transocean Ltd (RIG), a significant player in the drilling industry, has recently seen a notable shift in its Stochastic Oscillator. On July 27, 2023, the Stochastic Oscillator for RIG moved out of the overbought territory. This movement could potentially be a bearish sign for the stock, suggesting that investors may want to consider selling or adopting a defensive position.
The Stochastic Oscillator is a momentum indicator that compares a particular closing price of a security to a range of its prices over a certain period of time. When the oscillator moves out of the overbought zone, it often indicates that the security may be becoming overvalued and could be primed for a reversal.
Historical data from A.I.dvisor supports this potential bearish outlook. In 53 of 61 similar instances where RIG's Stochastic Oscillator exited the overbought zone, the stock moved lower. This represents an 87% probability of a downward move, suggesting a high likelihood of a bearish trend.
Investors should closely monitor RIG in light of this development. However, as with all investments, it's crucial to consider other market factors and conduct comprehensive research before making any decisions.
The recent movement of RIG's Stochastic Oscillator out of the overbought zone could be a bearish signal. With an 87% chance of a downward move based on historical data, investors should proceed with caution and consider their positions carefully.
PTEN's Momentum Indicator Signals a Potential Upward Trend
Patterson-UTI Energy (PTEN), a key player in the drilling industry, has recently seen a positive shift in its Momentum Indicator. On July 03, 2023, PTEN's Momentum Indicator moved above the 0 level, suggesting a potential shift into a new upward trend. This could be a bullish sign for the stock, indicating that traders may want to consider buying the stock or purchasing call options.
The Momentum Indicator is a tool used in technical analysis that uses the stock's closing price to evaluate the speed of a price movement. When the Momentum Indicator moves above the 0 level, it often indicates that the stock's price is moving upward with increasing momentum, which could signal a buying opportunity.
Historical data from Tickeron's A.I.dvisor supports this potential bullish outlook. In 71 of 81 similar instances where PTEN's Momentum Indicator turned positive, the stock moved higher in the following days. This represents an 88% probability of an upward move, suggesting a high likelihood of a bullish trend.
Investors should closely monitor PTEN in light of this development. However, as with all investments, it's crucial to consider other market factors and conduct comprehensive research before making any decisions.
The recent positive shift in PTEN's Momentum Indicator could signal a new upward trend. With an 88% chance of a move higher based on historical data, investors should consider this a potentially favorable time to invest in PTEN.
The 10-day RSI Indicator for DO moved out of overbought territory on September 13, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 20 instances where the indicator moved out of the overbought zone. In of the 20 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Momentum Indicator moved below the 0 level on September 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DO as a result. In of 54 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DO turned negative on September 19, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 32 similar instances when the indicator turned negative. In of the 32 cases the stock turned lower in the days that followed. This puts the odds of success at .
DO moved below its 50-day moving average on September 19, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DO crossed bearishly below the 50-day moving average on September 26, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 10 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DO broke above its upper Bollinger Band on September 12, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DO advanced for three days, in of 158 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.636) is normal, around the industry mean (1.385). P/E Ratio (7.893) is within average values for comparable stocks, (38.777). DO's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (0.173). DO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.032). P/S Ratio (1.575) is also within normal values, averaging (1.220).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of contract drilling services to the energy industry
A.I.dvisor indicates that over the last year, DO has been closely correlated with NE. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if DO jumps, then NE could also see price increases.