As we've hit the halfway point for 2012, now's a good time to look back at what's happening with the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Seadrill
Stats on Seadrill
|2012 YTD Return||12.3%|
|Market Cap||$16.6 billion|
|Revenue, Most Recent Quarter||$1.03 billlion|
|Year-Over-Year Revenue Growth, Most Recent Quarter||(5.2%)|
|Net Income, Most Recent Quarter||$416 million|
|Year-Over-Year Net Income Growth, Most Recent Quarter||(52.7%)|
|CAPS Rating (out of 5)||*****|
Source: S&P Capital IQ.
Why is Seadrill still thriving this year?
The key to understanding Seadrill's recent success is simple: Just look at daily contract rates for ultra-deepwater rigs. Transocean
Still, competition is coming. DryShips
The question, though, is whether lower oil prices could threaten drilling activities. Clearly, at some price point, expensive deepwater drilling becomes uneconomical. At $80-$85 per barrel, however, oil prices would have to fall further before Seadrill hit that point. As long as energy prices can stabilize here, then Seadrill should continue to enjoy success.
Seadrill has had some good performance, but we've got another stock that we think has a better chance to deliver strong gains in the future. Read about it right here in the Motley Fool's special free report on the energy industry and its best prospects.
Click here to add Seadrill to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Transocean, ExxonMobil, and Seadrill. Motley Fool newsletter services have recommended buying shares of Seadrill. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.