Transocean Ltd. (RIG): Among the Most Promising Penny Stocks According to Analysts
We recently published a list of the . In this article, we are going to take a look at where Transocean Ltd. (NYSE:RIG) stands against other promising penny stocks.
Solus' Dan Greenhaus, and Invesco's Brian Levitt together appeared on CNBC's 'Closing Bell' on April 15 to talk about tariffs, market uncertainty, and risk concerns. The discussion started with Dan Greenhaus expressing his belief that many worst-case scenarios are already priced into the market. He acknowledged that he's cautious but not overly worried. He pointed out recent events, like the exemptions on auto part imports and the 90-day delay on tariff implementation, as evidence that President Trump is listening to advisors and avoiding pushing toward extreme outcomes. Greenhaus attributed these actions to the rebound seen in the stock market. At the same time, he agreed that the administration has been rather inconsistent, in the context of Morgan Stanley's comment that investors should prepare for more inconsistencies. But he argued that many investors are assuming scenarios closer to the worst rather than the best. He emphasized that while frightening predictions about skyrocketing prices are taking over media right now, these scenarios are unlikely to materialize.
Brian Levitt built on Greenhaus' optimism while acknowledging the ongoing uncertainty as well. He attributed this uncertainty to the reliance on decisions from the White House rather than traditional policy mechanisms. He compared the current situation to 2018 when markets fell 20% in a quarter before rebounding due to trade pauses and Fed intervention. He cautioned that the current S&P 500 multiples are not at recession levels so there are potential downside risks if uncertainty remains. While Levitt thinks that business investment and consumer confidence metrics show signs of prolonged volatility, Greenhaus further emphasizes that periods of heightened uncertainty often end up presenting long-term investment opportunities. He acknowledged risks such as sudden tariff increases but also encouraged investors to take advantage of these moments when risk premiums rise.
We sifted through the Finviz stock screener to compile a list of the top penny stocks that were trading below $5 and had the highest analysts' upside potential (at least 40%). The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey's database.
Note: All data was sourced on April 15.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An aerial view of an oil rig with drillers in hard hats working on the platform.
Share Price as of April 15: $2.22
Number of Hedge Fund Holders: 38
Average Upside Potential as of April 15: 85.81%
Transocean Ltd. (NYSE:RIG) provides offshore contract drilling services for oil and gas wells. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. It also operates a fleet of mobile offshore drilling units, which consists of ultra-deepwater floaters and harsh environment floaters.
The company heavily relies on its fleet of high-specification drillships, specifically the seventh-generation plus and eighth-generation rigs. In 2024, these advanced assets secured premium contracts. Day rates exceeded $500,000 for the seventh-gen plus rigs and crossed $600,000 for the eighth-generation 20k assets. Transocean's existing fleet is almost fully booked through 2026.
The company is now focused on securing new contracts for mid to late 2026 and beyond, targeting these high-specification drillships again. In 2024, Transocean Ltd. (NYSE:RIG) achieved a major industry milestone by installing the first two 20k subsea completions on its eighth-generation drillships. It's also implementing advanced automation systems like IntelliWell, which enable safer and more efficient drilling operations. This includes handling over 1.5 million feet of drill pipe with zero personnel in hazardous zones.
Overall, RIG ranks 9th on our list of the most promising penny stocks according to analysts. While we acknowledge the growth potential of RIG, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RIG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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