SDRL Stock Analysis: Buy, Sell, or Hold?
SDRL - Seadrill Limited
$39.87
1.02 (2.63%)
▲
5d:
+3.88%
30d:
-15.9%
90d:
-10.53%
BUY
HIGH Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SDRL appears deeply undervalued. Market expects -14.7% annual earnings decline despite 63% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: SDRL appears deeply undervalued. Market expects -14.7% annual earnings decline despite 63% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$125.30
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$77.80
48.8% Margin of Safety
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 18.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SDRL is currently trading at $39.87, which is considered oversold relative to its 30-day fair value range of $39.24 to $46.75. From a valuation perspective, the stock is trading at a discount (Forward PE: 11.7) compared to its historical average (18.8). Remarkably, the market is currently pricing in an annual earnings decline of 14.7% over the next few years. This pessimistic expectation contrasts with the company's recent 63.1% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SDRL is in a strong uptrend. The price is currently testing key support at $43.41. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $56.25 (+41.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SDRL is in a strong uptrend. The price is currently testing key support at $43.41. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $56.25 (+41.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$39.24 -
$46.75
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 41.1% below Wall St target ($56.25)
Trading Range Analysis
30-Day Trading Range
$39.24 -
$46.75
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$43.41
Resistance Level
$48.76
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
11.65
Wall Street Target
$56.25
(+41.1%)
Revenue Growth (YoY)
8.8%
Earnings Growth (YoY)
63.1%
Profit Margin
-5.0%
Valuation Discount vs History
-14.7% cheaper
PE vs Historical
11.7 vs 18.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-14.7%
(market-implied from PE analysis)
1-Year Target
$35.88
(-10%)
2-Year Target
$32.29
(-19%)
3-Year Target
$29.07
(-27%)
3-Yr Target (if PE normalizes)
(PE: 12→19)
$46.91
(+18%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 273.2%)
$251.59
(+531%)
Base:
(SPY PE: 11.6, Growth: 273.2%)
$134.56
(+238%)
Bear:
(PE: 9.9, Growth: 273.2%)
$114.38
(+187%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 11.6 to 18.8
Stabilization Target:
$64.34
(+61.4%)
PE Expansion Potential:
+61.4%
Share & Embed Analysis
Last updated: July 04, 2026 1:31 PM ET
Data refreshes hourly during market hours. Next update: 2:31 PM
Data refreshes hourly during market hours. Next update: 2:31 PM
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Technical Signals Check
Is SDRL showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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