In the latest close session, Shell (SHEL) was up +2.67% at $75.44. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.03%.
Coming into today, shares of the oil and gas company had lost 1.37% in the past month. In that same time, the Oils-Energy sector lost 1.05%, while the S&P 500 gained 0.54%.
The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. In that report, analysts expect Shell to post earnings of $1.37 per share. This would mark year-over-year growth of 14.17%. In the meantime, our current consensus estimate forecasts the revenue to be $73.13 billion, indicating a 9.47% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.56 per share and a revenue of $270.89 billion, indicating changes of -12.77% and 0%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shell. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 4.77% lower. Shell is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Shell is holding a Forward P/E ratio of 11.62. This denotes a premium relative to the industry average Forward P/E of 10.02.
We can additionally observe that SHEL currently boasts a PEG ratio of 3.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 228, positioning it in the bottom 7% 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.
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
