We recently compiled a list of the 10 Best Stocks For Day Trading. In this article, we are going to take a look at where Transocean Ltd. (NYSE:RIG) stands against the other day trading stocks.
At the press conference held on September 18, Federal Reserve Chair Jerome Powell reiterated the central bank’s commitment to its dual mandate of achieving maximum employment and price stability. He noted that the U.S. economy has remained strong, with GDP increasing at a steady rate of 2.2% in the first half of the year, while inflation has significantly moderated.
While the labor market has softened somewhat, it continues to show strength, with the unemployment rate still relatively low at 4.2%. Inflationary pressures have reduced, although inflation remains slightly above the 2% target, as core PCE prices have risen by 2.7% over the past year.
In light of these developments, the Federal Open Market Committee (FOMC) chose to lower its policy interest rate by 50 basis points, a move intended to ease monetary policy. Powell explained that this action reflects growing confidence that labor market strength can be maintained, while inflation continues to decrease toward the Fed’s target. Powell emphasized the Fed’s flexibility in its approach and noted that future rate changes will depend on incoming data and the evolving economic landscape.
When questioned about the likelihood of future rate cuts, Powell said that each decision would be data-driven and made on a meeting-by-meeting basis. The Summary of Economic Projections (SEP) suggests a federal funds rate of 4.4% by the end of the year, with further reductions expected in the years ahead, which points to expectations of lower inflation and slightly higher unemployment.
Expert Opinion on Current Economic Conditions
At a CNBC interview on September 23, Stephanie Link, Chief Investment Strategist and Portfolio Manager at Hightower said that the market’s current state of confidence is driven by the belief that the Fed is successfully managing a soft landing and preparing for a cycle of rate cuts. She expects better-than-expected economic growth and earnings forecasts, despite the ongoing volatility in the market.
Link noted the strong recent data, which include improved retail sales, manufacturing, and housing permits, along with jobless claims at a four-month low. This backdrop supports earnings growth and any market weakness presents a buying opportunity, especially in sectors like technology, financials, and industrials.
When asked about her stock picks, Link highlighted Exxon, as she mentioned its low valuation, attractive forward earnings, and the recent acquisition of Pioneer. She expects this acquisition to drive significant production growth and sees multiple upcoming catalysts, such as an analyst meeting in December and new projects next year.
Although oil prices remain volatile due to geopolitical factors in the Middle East, Link downplayed the concerns about higher prices and said that the oil giant generates substantial profits even at lower oil prices. She said that the sector’s ability to return cash to shareholders through dividends and buybacks sees further upside in energy stocks despite the sector lagging recently.
Our Methodology
For this article, we identified over 35 stocks with a beta of over 2.5. Next, we narrowed the list to 10 stocks with the highest 5-year beta and average trading volume of over 10 million. The 10 best stocks for day trading are listed in ascending order of their beta. We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial view of an oil rig with drillers in hard hats working on the platform.
Transocean Ltd. (NYSE:RIG)
5-year Beta (monthly): 2.80
Average Volume: 20,558,325
Number of Hedge Fund Holders: 42
Transocean Ltd. (NYSE:RIG) is a Swiss company that is a leading offshore drilling contractor, which focuses primarily on deepwater and ultra-deepwater oil and gas exploration. It operates in multiple countries, including locations such as the United States, Canada, Brazil, and Norway.
The company is renowned for its fleet of advanced drilling rigs, which cater to major players in the global energy sector. Over its history, it has expanded through mergers and acquisitions to position itself as one of the largest offshore drilling firms.
On September 4, The Fly reported that Transocean (NYSE:RIG) secured a contract from Reliance Industries Limited to deploy the Dhirubhai Deepwater KG1 rig for drilling six wells off India’s coast. The project, set to start in Q2 2026, is expected to last around 300 days and generate approximately $123 million in backlog, excluding additional fees. The agreement also allows for options that could extend the rig’s operations in India until late 2029.
The contract could significantly benefit the company as it expands the company’s footprint along with the revenue injection. Moreover, the long-term nature of the project, with options for extensions, ensures steady income over the next several years, which is quite significant in a volatile market.
In addition to the Reliance contract, Transocean (NYSE:RIG) also recently secured a one-year contract with BP p.l.c. for the Deepwater Atlas rig, which will operate in the U.S. Gulf of Mexico with an option for one additional year. The project is expected to start in 2028 and will add $232 million to the company’s backlog.
In Q2, 42 hedge funds held stakes in Transocean (NYSE:RIG), with positions worth $490.239 million. As of the second quarter, Slate Path Capital is the most significant shareholder in the company and has a stake worth $165.86 million.
Overall RIG ranks 6th on our list of the best stocks for day trading. While we acknowledge the potential of 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 timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
