There are plenty of investors in the market looking for the next best set of opportunities so they can start 2025 on a strong note, leaving them with peace of mind and available capital to pursue some of the more aggressive moves in the market later. on. Today, the dots will be connected between what Goldman Sachs analysts said in their 2025 macroeconomic outlook report and the potential best play in the energy sector tracked Select Energy Sector SPDR Fund NEW SIRKA: XLE.
As more market participants realize that oil prices today offer some of the best, if not the best, growth potential in the commodity space, investors need to start diving deeper into the sector and figuring out which industry makes the most sense here. Speaking of drilling, the biggest upside appears to be in oil drilling stocks, which can be tracked by ETF VanEck Oil Services NYSEARCA:OIH.
However, there is one particular drilling services provider with a wider presence in international markets that is already seeing demand growth in 2025. Today’s investors will have access to nearly 100% growth potential hosted on Shares of Transocean Ltd. NYSE: INSTALLATION for the coming months are stocks worth paying attention to for those ready to see their wealth increase this year.
Global trends point to rising oil demand
Transoceanic today
- 52 week range
- US$3.40
▼
$6.88
- Target price
- $5.94
Before investors get into the nitty gritty of Transocean and what justifies such aggressive growth potential, they must first understand what’s going on behind the scenes in the world of oil. If you look at demand trends, there isn’t much demand right now, but the data shows a completely different world in the next quarter.
The world’s two largest economies, the US and China, are now turning their business cycles into one of the main drivers of oil price growth in the coming months. That’s why Goldman Sachs decided to focus its recommendations on manufacturing and oil stocks in its report.
Since the manufacturing PMI report showed an unexpected surge in new orders in December 2024, it can be assumed that many industries are expecting an increase in export demand in 2025. Then in China Caixin Manufacturing PMI just reported its third consecutive monthly expansion, not to mention better-than-expected import and export volumes.
With China accounting for roughly 40% of global oil demand, traders are sure to be prepared for the coming surge. No wonder Warren Buffett decided to buy up to 29% of the shares Occidental Petroleum Co. New York Stock Exchange: OXY in the last few quarters, confirming the current view of the energy sector falling on the bullish side.
Hedge funds have also decided to start accumulating positions in oil futures, but here’s why Transocean stock is a better choice. Being in the drilling services industry, this company is designed to get paid before everyone else when oil prices rise and demand for production returns, and this is where the growth potential comes in.
Deal Breakdown: Upside Potential for Transocean Shares
As of today, Transocean shares are trading at 59% of their 52-week high, meaning the potential downside is relatively priced in at the moment, giving investors an extremely favorable risk-reward profile to dominate their portfolio in 2025. Here are some fundamental factors that will influence the stock’s future.
Transocean stock forecast today
$5.94
Growth potential 46.60%Hold
Based on ratings of 10 analysts
| High forecast | $8.00 |
|---|---|
| Average forecast | $5.94 |
| Low forecast | $4.50 |
Transocean stock forecast details
As of December 2024, Transocean management announced a new ultra-deepwater drilling contract worth up to $111 million. This new addition means two things for investors; Above all, it signals that demand is recovering and indicates that customers are looking to prepare for a sharp rise in oil prices.
Second, it widens the already significant backlog of $9.3 billion that the latest quarterly earnings presentation shows will turn into revenue over the next three years. Now, given that Transocean is only a $3.5 billion company, this lag will turn the company’s future sales into a huge discount in terms of its price-to-sales (P/S) ratio.
That’s why Wall Street analysts are willing to forecast earnings per share (EPS) of up to $0.02 in 12 months. While this may not seem like much, it is a significant increase from today’s net loss of $0.04 per share. Moreover, investors should be aware that underperformance assumptions are likely not included in these forecasts.
However, other analysts might appreciate this potential, such as those from Susquehanna. These analysts have decided to reiterate their positive rating on the stock, this time setting a price target of $6.50 per share for Transocean, implying an upside of 63.3% from where the stock is trading today.
Before you consider Transocean, you should hear this.
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