In the latest trading session, Shell (SHEL) closed at $70.46, marking a -2.45% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.24%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Shares of the oil and gas company have depreciated by 4.2% over the course of the past month, underperforming the Oils-Energy sector's loss of 1.72%, and the S&P 500's gain of 1.31%.
Market participants will be closely following the financial results of Shell in its upcoming release. The company is expected to report EPS of $1.37, up 14.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $73.13 billion, up 9.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.54 per share and a revenue of $271.56 billion, representing changes of -13.03% and -6.05%, respectively, from the prior 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been a 0.47% fall in the Zacks Consensus EPS estimate. Shell is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Shell is presently being traded at a Forward P/E ratio of 11.04. This valuation marks a premium compared to its industry average Forward P/E of 10.94.
Also, we should mention that SHEL has a PEG ratio of 3.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.86.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 35% 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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