SDRL Stock Analysis: Buy, Sell, or Hold?
SDRL - Seadrill Limited
$42.26
1.77 (4.37%)
▲
5d:
+10.2%
30d:
-5.69%
90d:
-11.07%
BUY
HIGH Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Aug 05, 2026
21d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SDRL appears deeply undervalued. Market expects -13.1% annual earnings decline despite 63% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: SDRL appears deeply undervalued. Market expects -13.1% 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
$125.25
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$77.77
45.7% 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 18.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SDRL is currently trading at $42.26, which is considered slightly high relative to its 30-day fair value range of $38.34 to $43.18. From a valuation perspective, the stock is trading at a discount (Forward PE: 12.2) compared to its historical average (18.5). Remarkably, the market is currently pricing in an annual earnings decline of 13.1% 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. The stock is showing strong short-term momentum, up 4.4% recently.
Market Sentiment: SDRL has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $56.25 (+33.1%). 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. The stock is showing strong short-term momentum, up 4.4% recently.
Market Sentiment: SDRL has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $56.25 (+33.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$38.34 -
$43.18
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
81.0%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+4.4%)
- BULLISH: Trading 33.1% below Wall St target ($56.25)
Trading Range Analysis
30-Day Trading Range
$38.34 -
$43.18
Current vs Trading Range
SLIGHTLY HIGH
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.)
12.16
Wall Street Target
$56.25
(+33.1%)
Revenue Growth (YoY)
8.8%
Earnings Growth (YoY)
63.1%
Profit Margin
-5.0%
Valuation Discount vs History
-13.1% cheaper
PE vs Historical
12.2 vs 18.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-13.1%
(market-implied from PE analysis)
1-Year Target
$38.03
(-10%)
2-Year Target
$34.23
(-19%)
3-Year Target
$30.81
(-27%)
3-Yr Target (if PE normalizes)
(PE: 12→19)
$46.89
(+11%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 224.4%)
$255.56
(+505%)
Base:
(SPY PE: 12.2, Growth: 224.4%)
$142.63
(+238%)
Bear:
(PE: 10.3, Growth: 224.4%)
$121.23
(+187%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 12.2 to 18.5
Stabilization Target:
$64.32
(+52.2%)
PE Expansion Potential:
+52.2%
Share & Embed Analysis
Last updated: July 14, 2026 2:15 AM ET
Data refreshes hourly during market hours. Next update: 3:15 AM
Data refreshes hourly during market hours. Next update: 3:15 AM
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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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