Shell (SHEL) ended the recent trading session at $72.59, demonstrating a +1.71% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.52%.
Coming into today, shares of the oil and gas company had lost 0.1% in the past month. In that same time, the Oils-Energy sector lost 3%, while the S&P 500 gained 0.71%.
The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.61, marking a 16.15% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $73.69 billion, reflecting a 1.69% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.5 per share and a revenue of $282.18 billion, demonstrating changes of -13.56% and -2.37%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Shell. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.2% upward. As of now, Shell holds a Zacks Rank of #3 (Hold).
In the context of valuation, Shell is at present trading with a Forward P/E ratio of 10.99. This denotes a premium relative to the industry average Forward P/E of 10.25.
It is also worth noting that SHEL currently has a PEG ratio of 1.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 221, positioning it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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