Shell (SHEL) closed at $71.15 in the latest trading session, marking a +1.18% move from the prior day. This change outpaced the S&P 500's 0.06% gain on the day. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 0.39%.
Heading into today, shares of the oil and gas company had lost 0.73% over the past month, outpacing the Oils-Energy sector's loss of 3.71% and lagging the S&P 500's gain of 5.88%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.13, indicating a 42.64% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $73.7 billion, reflecting a 1.8% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.98 per share and a revenue of $290.48 billion, demonstrating changes of -20.48% and +0.5%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shell. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate has shifted 2.68% downward. At present, Shell boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Shell is presently trading at a Forward P/E ratio of 11.76. This signifies a premium in comparison to the average Forward P/E of 11.1 for its industry.
We can also see that SHEL currently has a PEG ratio of 2.04. 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 1.98 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 29% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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