The most recent trading session ended with Shell (SHEL) standing at $62.78, reflecting a +0.38% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.17% loss on the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.05%.
The oil and gas company's shares have seen a decrease of 10.79% over the last month, not keeping up with the Oils-Energy sector's loss of 10.33% and the S&P 500's loss of 3.94%.
Market participants will be closely following the financial results of Shell in its upcoming release. The company is forecasted to report an EPS of $1.57, showcasing a 34.03% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $79.72 billion, reflecting a 6.72% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.20 per share and revenue of $305.26 billion, which would represent changes of -4.26% and +5.62%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Shell. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.44% lower. Shell currently has a Zacks Rank of #3 (Hold).
Investors should also note Shell's current valuation metrics, including its Forward P/E ratio of 8.68. This valuation marks a premium compared to its industry's average Forward P/E of 7.63.
It is also worth noting that SHEL currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.11.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
