5 Best Oil and Gas Drilling Stocks to Buy Now

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1. Transocean Ltd. (NYSE:RIG)

Number of Hedge Fund Holders: 63

Transocean Ltd. (NYSE:RIG) ranks among the best oil and gas drilling stocks to buy now. Following recent contract renewals with Petrobras, Barclays reaffirmed its Equalweight rating and $6 price target for Transocean Ltd. (NYSE:RIG). The company has six rigs contracted with Petrobras, four of which are blend/extend prospects.

According to Barclays, the extensions suggest a need for deepwater rigs, despite Petrobras’ intention to reduce costs in the short term via blend/extend agreements.

Similarly, on May 19, BofA increased its price target for Transocean Ltd. (NYSE:RIG) to $4 from $3.50 while maintaining an Underperform rating on the stock. The firm, having upgraded its oilfield services models for Q1 results and 10-Q reports, noted that its average predictions for 2027 and 2028 EBITDA are 10% and 16% higher than the average, respectively.

In Q1, the company achieved contract drilling revenue of $1.08 billion, aided by a solid revenue efficiency of 97.3%. During the quarter, the company built up $1.6 billion in contract backlog. Transocean Ltd. (NYSE:RIG) also said that it signed new or extended contracts for five rigs during the quarter, bringing its total backlog to $7.1 billion.

Transocean Ltd. (NYSE:RIG) is an international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a strong focus on ultra-deepwater and harsh environment drilling services.

While we acknowledge the potential of RIG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIG and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Starter Stock Portfolio: 14 Safe Stocks to Buy Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

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