The latest trading session saw Shell (SHEL – Free Report) ending at $61.69, denoting a +0.54% adjustment from its last day’s close. This move outpaced the S&P 500’s daily loss of 1.11%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.49%.
Shares of the oil and gas company witnessed a loss of 5.47% over the previous month, beating the performance of the Oils-Energy sector with its loss of 8.07% and underperforming the S&P 500’s gain of 0.4%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $1.97, signifying a 11.26% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $78.94 billion, indicating a 1.48% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.48 per share and a revenue of $301.17 billion, representing changes of +0.95% and -6.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. Currently, Shell is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shell has a Forward P/E ratio of 7.23 right now. For comparison, its industry has an average Forward P/E of 7.72, which means Shell is trading at a discount to the group.
Also, we should mention that SHEL has a PEG ratio of 4.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. SHEL’s industry had an average PEG ratio of 2.05 as of yesterday’s close.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 136, placing it within the bottom 46% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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