Is Valaris a Buy?
Valaris (NYSE: VAL), formerly EnscoRowan, has spent the past several years repositioning its business to better compete in the challenging offshore drilling sector. The company took advantage of the industry's rough patch over the past few years by acquiring rivals Atwood Oceanics and Rowan, which created the largest offshore driller by fleet size. Those deals, when combined with the company's other moves to reduce costs, have it well positioned as the offshore drilling sector rebounds.
However, while industry conditions are improving, shares of Valaris have plunged more than 70% so far this year. Because of that, investors likely wonder if its stock is a screaming buy or a value trap. Here's a look at the case for and against buying shares of this energy stock.
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Source Fool.com
