Seadrill (NYSE:SDRL) shares have seen some action recently, and investors are taking stock of the company’s performance. The past month shows about a 4% gain, even as the overall one-year return trails by 20%.
Seadrill's recent 4% share price return over the past month hints at a rebound. However, the one-year total shareholder return of -20% shows momentum is still recovering after a tough stretch for offshore drillers. The stock has seen some positive movement lately, but the longer-term performance signals that sentiment and investor risk appetite are still finding their footing.
With shares still well below analyst targets, but recent gains suggesting renewed optimism, the key question is whether Seadrill is a bargain waiting to be realized or if the market already anticipates its next move.
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Most Popular Narrative: 27.7% Undervalued
At $31.47, Seadrill’s stock price sits well below the dominant narrative’s $43.50 fair value. This suggests a meaningful gap between market expectations and projected future potential.
*A significant pickup in offshore exploration activity is expected, as major operators like TotalEnergies and BP commit to multi-year, high-volume drilling campaigns. Regulatory changes in the US Gulf and Brazil are also driving more lease sales. These factors could directly increase future revenue, fleet utilization, and dayrate potential from late 2026 onward.*
Want to see which future shifts in margins and earnings could be behind this bold fair value? The real story is in aggressive growth bets and profit leaps that would surprise even optimists. Ready to unpack the surprising analyst assumptions that push Seadrill’s price target far beyond today’s level? Dive in and see what everyone’s missing.
However, near-term market softness and increased competition could challenge Seadrill’s pricing power. This may potentially delay the anticipated turnaround in earnings growth.
While the analyst consensus points to a fair value well above Seadrill’s market price, a look at its price-to-earnings ratio tells a different story. Trading at 25.4x earnings, Seadrill looks pricey compared to peers averaging 15.9x and the US Energy Services industry average at 16.5x. Still, the fair ratio suggests 28x could be justified if market optimism returns. Is this a warning signal or a window for risk-tolerant investors?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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