The latest trading session saw Shell (SHEL – Free Report) ending at $66.79, denoting a +1.18% adjustment from its last day’s close. This move outpaced the S&P 500’s daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw an increase of 0.7%.
Heading into today, shares of the oil and gas company had lost 0.23% over the past month, outpacing the Oils-Energy sector’s loss of 6.33% and the S&P 500’s loss of 5.56% in that time.
Market participants will be closely following the financial results of Shell in its upcoming release. The company is predicted to post an EPS of $1.98, indicating a 16.81% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $79.93 billion, up 7% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.94 per share and a revenue of $316.17 billion, signifying shifts of +5.59% and +9.39%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shell. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been a 6.46% rise in the Zacks Consensus EPS estimate. As of now, Shell holds a Zacks Rank of #3 (Hold).
With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 8.32. This signifies a premium in comparison to the average Forward P/E of 7.52 for its industry.
We can additionally observe that SHEL currently boasts a PEG ratio of 0.92. 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. The Oil and Gas – Integrated – International industry had an average PEG ratio of 1.01 as trading concluded yesterday.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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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