Shell (SHEL) closed at $71.41 in the latest trading session, marking a -1.27% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
The oil and gas company's stock has climbed by 1.23% in the past month, falling short of the Oils-Energy sector's gain of 3.89% and the S&P 500's gain of 2.57%.
The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. The company is predicted to post an EPS of $1.46, indicating a 23.96% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $73.69 billion, up 1.69% from the year-ago period.
SHEL's full-year Zacks Consensus Estimates are calling for earnings of $6.09 per share and revenue of $282.18 billion. These results would represent year-over-year changes of -19.02% and -2.37%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.27% higher. At present, Shell boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Shell is at present trading with a Forward P/E ratio of 11.87. This valuation marks a premium compared to its industry average Forward P/E of 11.21.
We can also see that SHEL currently has a PEG ratio of 1.9. 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.84.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 39% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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