Shell (SHEL) closed the most recent trading day at $74.12, moving -1.05% from the previous trading session. This move lagged the S&P 500's daily gain of 0.58%.
Shares of the oil and gas company have appreciated by 4.16% over the course of the past month, outperforming the Oils-Energy sector's gain of 3.53%, and the S&P 500's gain of 3.68%.
The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. The company's upcoming EPS is projected at $1.42, signifying a 26.04% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $73.69 billion, up 1.69% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.21 per share and revenue of $282.18 billion. These totals would mark changes of -17.42% and -2.37%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shell. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has moved 2% higher. Shell presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shell has a Forward P/E ratio of 12.06 right now. Its industry sports an average Forward P/E of 10.7, so one might conclude that Shell is trading at a premium comparatively.
Meanwhile, SHEL's PEG ratio is currently 1.95. 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. The Oil and Gas - Integrated - International industry had an average PEG ratio of 1.99 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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