Industry Analysis: Contract Drilling Market
Swing Trader, Long Only: Valuation & Efficiency Model for Energy Sector (TA&FA) Annualized Return + 13%
Industry Contract Drilling +19.74% - 1M change
The Contract Drilling industry includes companies offering onshore and offshore drilling services to the energy sector on a contractual or per-fee basis. Major and independent oil and gas firms are the primary customers. Industry heavyweights like Helmerich & Payne, Inc., Transocean Ltd, and Patterson-UTI Energy, Inc. are notable players in the U.S. market. The industry recently experienced a surge of +19.74% in the last month.
The Contract Drilling industry comprises various stocks. The group of tickers includes $BORR, $DO, $HP, $NBR, $NE, $PDS, $PTEN, $RIG, and $SDRL. These stocks showed a positive outlook in recent market trends, with Volume Indicators backing the positive stance.
The average market capitalization across the industry is $3.4B, with tickers in the group ranging from $899M to $7.2B. Noble Corp (NE) holds the highest valuation in the group at $7.2B, while Precision Drilling Corp (PDS) is the lowest-valued company at $899M.
The average weekly price growth across all stocks in the group was 2.45%. Monthly price growth averaged 22.88%, with quarterly growth averaging 12.42%.
1. Noble Corp ($NE)
Noble Corporation, with a market cap of $7.2B, emerged as a significant player. The company experienced a remarkable +13.12% jump in the weekly gain on 7/1/23.
2. Borr Drilling ($BORR)
Borr Drilling recorded a commendable performance, with a +10.68% increase in weekly gain noted on 6/30/23.
3. Seadrill Ltd ($SDRL)
Seadrill Ltd made headlines with record-breaking volume increases. The daily growth of 302%, 351%, and 328% of the 65-Day Volume Moving Average was recorded on 7/13/23, 7/11/23, and 7/7/23, respectively.
Fundamental Analysis Ratings
The industry’s average fundamental analysis ratings are as follows: Valuation Rating at 64, P/E Growth Rating at 76, Price Growth Rating at 36, SMR Rating at 79, and Profit Risk Rating at 79. These ratings give investors a comprehensive insight into the group's financial health and potential growth prospects.
The RSI Indicator for BORR moved out of oversold territory on September 08, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In of the 26 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on September 14, 2023. You may want to consider a long position or call options on BORR as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BORR just turned positive on September 12, 2023. Looking at past instances where BORR's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BORR advanced for three days, in of 213 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
BORR moved below its 50-day moving average on August 17, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BORR crossed bearishly below the 50-day moving average on August 24, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 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 BORR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BORR broke above its upper Bollinger Band on September 15, 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 Aroon Indicator for BORR entered a downward trend on September 18, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BORR’s price grows at a higher rate over the last 12 months as compared to 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 (2.000) is normal, around the industry mean (1.419). P/E Ratio (0.000) is within average values for comparable stocks, (38.908). BORR's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (0.177). BORR has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.031). BORR's P/S Ratio (2.674) is slightly higher than the industry average of (1.239).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BORR’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 company, which engages in the provision of drilling services to the oil and gas exploration and production industry.
A.I.dvisor indicates that over the last year, BORR has been loosely correlated with RIG. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if BORR jumps, then RIG could also see price increases.