10 Overlooked Energy Stocks to Buy Now

3. Transocean Ltd. (NYSE:RIG)

Forward Price-to-Earnings: 14.83

Number of Hedge Fund Holders: 32

Transocean Ltd. (NYSE:RIG) is included in our list of the 10 Overlooked Energy Stocks to Buy Now.

On August 4, 2025, Transocean Ltd. (NYSE:RIG) reported its Q2 2025 results. The company reported $988 million in revenue, which beat the $969.61 million consensus. Top-line growth was driven by improved rig utilization, high operational reliability, and reduced operating costs. Accordingly, adjusted net income reached $19 million, while EBITDA margin and free cash flow reached 35% and $104 million, respectively. Furthermore, the company remains on track to cut its debt by over $700 million by the end of 2025. This bolsters the company’s financial health, especially after recording a GAAP net loss of $938 million during the quarter, driven by over $1 billion in impairment charges.

Following the earnings release, Barclays raised its price target on Transocean Ltd. (NYSE:RIG) from $3.50 to $4.00, maintaining an ‘Overweight’ rating. The investment firm cited higher day rate forecasts and growing confidence in an offshore drilling recovery in 2026-2027.

Transocean Ltd. (NYSE:RIG) delivers offshore contract drilling solutions to oil and gas wells globally. It is included in our list of the Overlooked Stocks.