In the latest trading session, Shell (SHEL) closed at $85.40, marking a -1.53% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.
The oil and gas company's stock has climbed by 2.96% in the past month, exceeding the Oils-Energy sector's loss of 3.06% and lagging the S&P 500's gain of 5.47%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. The company is expected to report EPS of $2.91, up 104.93% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $104.4 billion, up 57.13% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.28 per share and revenue of $392.21 billion. These totals would mark changes of +63.17% and +43.29%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.16% higher. Shell is currently a Zacks Rank #3 (Hold).
In terms of valuation, Shell is presently being traded at a Forward P/E ratio of 8.44. This represents a premium compared to its industry average Forward P/E of 8.23.
It is also worth noting that SHEL currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 0.58.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% 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.
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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
