The fourth quarter has almost come to an end and it has turned out to be good for offshore drilling investors. The majority of the companies gave a positive return. Atwood Oceanics was the best performer among its peers while Noble gave the lowest return.
Below are the three-month returns for offshore drilling (OIH) companies as of December 29, 2016:
In this series, we’ll look at Wall Street analysts’ recommendations and ratings for offshore drilling companies. It’s important to note that analysts’ estimates usually lag behind price movements, so we see upgrades when stocks have already risen. As for downgrades, they’re apparent when a company has already seen lower prices.
That being said, changes in analysts’ estimates are key drivers of short-term price movements. Investors should keep track of changes in analysts’ estimates because they offer insight into what the market expects from a given company.
We’ll start by looking at analysts’ ratings for Seadrill.