In the latest close session, Shell (SHEL) was up +1.07% at $72.89. This move outpaced the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.
The stock of oil and gas company has fallen by 2.16% in the past month, lagging the Oils-Energy sector's gain of 3.33% and the S&P 500's gain of 2.74%.
Market participants will be closely following the financial results of Shell in its upcoming release. It is anticipated that the company will report an EPS of $1.46, marking a 23.96% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $73.69 billion, up 1.69% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.22 per share and a revenue of $282.18 billion, indicating changes of -17.29% and -2.37%, respectively, from the former year.
Any recent changes to analyst estimates for Shell should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 3.07% rise in the Zacks Consensus EPS estimate. Shell is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Shell is currently exchanging hands at a Forward P/E ratio of 11.6. This signifies a premium in comparison to the average Forward P/E of 10.86 for its industry.
One should further note that SHEL currently holds a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company'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 1.84.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
