Shell (SHEL – Free Report) ended the recent trading session at $72.72, demonstrating a -0.45% swing from the preceding day’s closing price. The stock trailed the S&P 500, which registered a daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.87%.
Shares of the oil and gas company have appreciated by 10.35% over the course of the past month, outperforming the Oils-Energy sector’s gain of 3.06% and the S&P 500’s loss of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. On that day, Shell is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 30.67%. Simultaneously, our latest consensus estimate expects the revenue to be $79.72 billion, showing a 6.72% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.22 per share and a revenue of $305.26 billion, indicating changes of -3.99% and +5.62%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.54% decrease. As of now, Shell holds a Zacks Rank of #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 10.12. This indicates a premium in contrast to its industry’s Forward P/E of 8.47.
We can additionally observe that SHEL currently boasts a PEG ratio of 1.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas – Integrated – International industry held an average PEG ratio of 1.39.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 140, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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