At the latest market close, Shell (SHEL) reached $72.78, up +1.86% from the previous day. The stock outperformed the S&P 500, which posted a 0.8% gain on the day. Elsewhere in the market, the Dow rose 1.51%, while the tech-heavy Nasdaq was down 0.01%.
Shares of the oil and gas company have lost 0.92% over the past month, lagging behind the Oil & Energy sector’s loss of 0.72% and the S&P 500’s gain of 4.14%.
Investors will be closely watching Shell’s performance in its upcoming earnings disclosure, as the company is projected to report EPS of $1.85, up 23.33% from the prior-year quarter, while our latest consensus estimate is calling for revenue of $88.71 billion, up 16.69% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates are projecting earnings of $8.37 per share and revenue of $351.7 billion, which would represent changes of -0.36% and +8.82%, respectively, from the prior year.
Investors should also note any recent changes to analyst forecasts for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, upward forecast revisions show analysts are more positive about the company’s business operations and its ability to generate profits.
Our research shows that these estimate revisions are directly correlated with proximate team’s stock price movements. To capitalize on this phenomenon, we developed the Zacks Rank. Our system takes these estimate revisions into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell), and it has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% higher. Shell currently has a Zacks Rank #3 (Hold).
Taking a closer look at valuation, Shell currently has a forward price-to-earnings ratio of 8.53. As its peers have an average forward price-to-earnings ratio of 7.59, one might conclude that Shell is trading at a relatively expensive price.
Investors should also note that SHEL’s PEG ratio is currently at 1.84. Similar to the widely accepted P/E ratio, the PEG ratio also takes into account a company’s expected earnings growth rate. As of yesterday’s close, SHEL’s industry had an average PEG ratio of 1.84.
The Oil & Gas – Integrated – International industry is a part of the Oil & Energy sector. This industry is currently ranked #101 in the Zacks Industry Rank, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by determining the average Zacks Rank of the individual stocks that make up the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To monitor all of these indicators and more impacting stocks in the coming trading sessions, remember to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Download today the 7 Best Stocks for the Next 30 Days: Click to get this free report.
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
