Shell (SHEL) closed at $67.04 in the latest trading session, marking a +0.42% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The oil and gas company's stock has climbed by 6.68% in the past month, exceeding the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Shell will be of great interest to investors. The company is predicted to post an EPS of $2.13, indicating a 23.38% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $85.78 billion, showing a 3.64% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.25 per share and a revenue of $351.54 billion, signifying shifts of -1.79% and +8.77%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.13% higher. Shell is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 8.09. This denotes a premium relative to the industry's average Forward P/E of 7.38.
We can also see that SHEL currently has a PEG ratio of 2.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.96.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 25% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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