18 Jul

How Offshore Drilling Stocks Performed Last Week

WRITTEN BY Sue Goodridge

Stock performance

Most offshore drilling stocks traded in the green in the week ended July 13 (week 28). The best performer during the week was Noble. Seadrill Partners was the weakest performer among its peers and the only offshore driller that traded in the red.

How Offshore Drilling Stocks Performed Last Week

Peers

Below are offshore drilling companies’ stock returns in Week 28:

  • Seadrill Partners (SDLP) fell 1.03%.
  • Transocean (RIG) rose 2.2%.
  • Noble Corporation (NE) rose 5.91%.
  • Diamond Offshore Drilling (DO) rose 3.8%.
  • Rowan Companies (RDC) rose 5.82%.
  • Ensco (ESV) rose 4.68%.
  • Seadrill (SDRL) rose 1.39%.

The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, rose 0.57%.

Year-to-date return

At the end of June 2018, Seadrill had the highest year-to-date return among peers. However, just a few days later, the situation has completely reversed. With a year-to-date return of -64.75% as of June 13, Seadrill has the worst YTD return among its peers. On July 2, Seadrill stock fell more than 52% after the company announced that it successfully emerged from Chapter 11 bankruptcy. The 52% drop was followed by another drop of 30% the next day. To know more about why Seadrill’s stock dropped so much, read Market Realist’s article, Why Seadrill Stock fell 52% on July 2. As of July 13, Noble had a YTD return of 42.7%, and Transocean had a YTD return of 26.12%.

In the next part of this series, we’ll see where the offshore rig count is headed in Week 28 followed by other updates from the last week and analysts’ revised target prices and recommendations for offshore drilling stocks.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.38.64