1. Transocean Ltd. (NYSE:RIG)
Price as of March 3: $2.95
Forward P/E ratio: 18.15
Analysts upside potential: 66.10%
Number of hedge fund holders: 38
Transocean Ltd. (NYSE:RIG) drills offshore oil and gas wells for customers worldwide. The company specializes in ultra-deepwater and harsh environment drilling and owns and operates one of the most advanced drilling fleets in the industry.
In February 2025, Transocean Ltd. (NYSE:RIG) reported fourth-quarter results, revealing that contract drilling revenues reached $952 million and adjusted EBITDA came in at $323 million. The company’s total backlog stands at an impressive $8.3 billion, offering substantial revenue visibility into 2026. This financial stability is bolstered by recent customer activity, with multiple clients exercising well options that added approximately $175 million to Transocean’s backlog in a single quarter.
Transocean Ltd. (NYSE:RIG) recently executed the first two 20K subsea completions in industry history, giving it a competitive edge in a sector slowly recovering from the COVID-19 shock and the recession that followed.
While we acknowledge the potential of Transocean Ltd. (NYSE:RIG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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