RIG Stock Surges 17% With A 6-day Winning Spree On New Contract Wins
Transocean (RIG) – a provider of offshore contract drilling services for oil and gas – hit 6-day winning streak, with cumulative gains over this period amounting to a 17%. The company market cap has surged by about $73 Mil over the last 6 days, and currently stands at $5.5 Bil.
The stock has YTD (year-to-date) return of 20.1% compared to 1.9% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] New International Contracts Secured
- Agreements in Brazil, Norway, and Australia announced
- Bolstered contract backlog and future revenue visibility
- Impact: Stock jumped 14.2% on Jan 23, Reached a new 52-week high
[2] Susquehanna Price Target Hike
- Upgrade occurred just prior to the winning streak
- Contributed to positive institutional sentiment
- Impact: Price target increased to $5.00, Analyst maintained “positive” rating
Opportunity or Trap?
Below is our take on valuation.
There are a few things to fear in RIG stock given its overall Moderate operating performance and financial condition. Hence, despite its Low valuation, this makes the stock look Risky (For details, see Buy or Sell RIG).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for RIG stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | RIG | S&P 500 |
|---|---|---|
| 1D | 1.0% | 0.4% |
| 6D (Current Streak) | 17.3% | 0.6% |
| 1M (21D) | 23.7% | 0.7% |
| 3M (63D) | 27.2% | 2.8% |
| YTD 2026 | 20.1% | 1.9% |
| 2025 | 10.1% | 16.4% |
| 2024 | -40.9% | 23.3% |
| 2023 | 39.3% | 24.2% |
However, big gains can follow sharp reversals – but how has RIG behaved after prior drops? See RIG Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 55 S&P constituents with 3 days or more of consecutive gains and 62 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 22 | 35 |
| 4D | 10 | 23 |
| 5D | 17 | 0 |
| 6D | 3 | 4 |
| 7D or more | 3 | 0 |
| Total >=3 D | 55 | 62 |
Key Financials for Transocean (RIG)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $2.8 Bil | $3.5 Bil |
| Operating Income | $-85.0 Mil | $372.0 Mil |
| Net Income | $-954.0 Mil | $-512.0 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $988.0 Mil | $1.0 Bil |
| Operating Income | $165.0 Mil | $237.0 Mil |
| Net Income | $-938.0 Mil | $-1.9 Bil |
While RIG stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.