SDRL Stock Analysis: Buy, Sell, or Hold?
SDRL - Seadrill Limited
$38.48
-0.19 (-0.49%)
▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 25, 2026
24d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: SDRL shows positive signals but monitor for confirmation. Market pricing in 5.4% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: SDRL shows positive signals but monitor for confirmation. Market pricing in 5.4% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$46.40
Based on 7.0% avg growth
INTRINSIC VALUE TODAY
$28.81
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 24.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SDRL is currently trading at $38.48, which is considered extended relative to its 30-day fair value range of $33.62 to $37.66. From a valuation perspective, the stock is trading at a premium (Forward PE: 28.4) compared to its historical average (24.3). At these levels, the market is pricing in 5.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, SDRL is in a strong uptrend. Immediate support is located at $33.95, while resistance sits at $40.16.
Market Sentiment: SDRL has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (12th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $43.71 (+13.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SDRL is in a strong uptrend. Immediate support is located at $33.95, while resistance sits at $40.16.
Market Sentiment: SDRL has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (12th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $43.71 (+13.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$33.62 -
$37.66
Company Quality Score
60/100
(HOLD)
Options IV Signal
12th percentile
(COMPLACENCY WARNING)
Volume Confirmation
HIGH
Confidence Score
66.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Options cheap (IV 12th percentile)
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($43.71)
- NEUTRAL: Trading at premium valuation - market expects 5.4% growth which is achievable
Fair Price Analysis
30-Day Fair Range
$33.62 -
$37.66
Current vs Fair Value
EXTENDED
Expected Move (7 Days)
±$2.25
(5.8%)
Support & Resistance Levels
Support Level
$33.95
Resistance Level
$40.16
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
28.38
Wall Street Target
$43.71
(+13.0%)
Revenue Growth (YoY)
5.4%
Earnings Growth (YoY)
63.1%
Profit Margin
2.6%
Valuation Premium vs History
+5.4% premium
PE vs Historical
28.4 vs 24.3
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+5.4%
(market-implied from PE analysis)
1-Year Target
$40.76
(+5%)
2-Year Target
$42.96
(+11%)
3-Year Target
$45.28
(+17%)
3-Yr Target (if PE normalizes)
(PE: 28→24)
PE COMPRESSION
$38.78
(+0%)
Earnings growth offset by PE compression
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (28x PE), but valuation improves significantly next year (28x PE) as earnings recover.
Forward PE: 28.41 | Forward EPS (Implied): $1.35
Bull Case
$46.46
(+21%)
Analyst growth 15.0%, PE expands to 29.8
Base Case
$38.48
(0%)
Market implied 0.0%, PE stable at 28.4
Bear Case
$29.44
(-24%)
Severe decline -15.0%, PE contracts to 25.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 1:01 PM ET
Data refreshes hourly during market hours. Next update: 2:01 PM
Data refreshes hourly during market hours. Next update: 2:01 PM
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Technical Signals Check
Is SDRL showing a specific setup today?
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Advanced SDRL Option Strategies
Professional options setups generated by AI based on today's SDRL price and gamma walls.
