Shell (SHEL) closed at $66.11 in the latest trading session, marking a +1.18% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.39%.
Coming into today, shares of the oil and gas company had lost 9.9% in the past month. In that same time, the Oils-Energy sector lost 4.69%, while the S&P 500 gained 2.43%.
Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.79, showcasing a 3.76% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $84.58 billion, indicating an 8.43% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.44 per share and a revenue of $315.17 billion, indicating changes of +0.48% and -2.48%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 2.22% fall in the Zacks Consensus EPS estimate. Right now, Shell possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Shell is holding a Forward P/E ratio of 7.74. This indicates a discount in contrast to its industry's Forward P/E of 7.75.
One should further note that SHEL currently holds a PEG ratio of 1.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.51.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 233, this industry ranks in the bottom 8% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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