The latest trading session saw Shell (SHEL) ending at $61.04, denoting a -1.17% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Heading into today, shares of the oil and gas company had lost 5.71% over the past month, lagging the Oils-Energy sector's loss of 2.83% and the S&P 500's gain of 1.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. The company's earnings report is set to go public on February 1, 2024. The company is forecasted to report an EPS of $1.94, showcasing a 29.71% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $89.59 billion, showing a 11.46% drop compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.89% lower. Currently, Shell is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 7.59. This valuation marks a premium compared to its industry's average Forward P/E of 6.67.
Investors should also note that SHEL has a PEG ratio of 0.81 right now. 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 the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 0.81.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
