In the latest trading session, Shell (SHEL) closed at $70.31, marking a -1.72% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
The stock of oil and gas company has fallen by 1.84% in the past month, leading the Oils-Energy sector's loss of 3.12% and undershooting the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. The company is predicted to post an EPS of $1.37, indicating a 14.17% growth compared to the equivalent quarter last year. 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.
For the full year, the Zacks Consensus Estimates project earnings of $6.55 per share and a revenue of $270.52 billion, demonstrating changes of -12.9% and 0%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Shell. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.27% lower. Currently, Shell is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shell has a Forward P/E ratio of 11.46 right now. This denotes a premium relative to the industry average Forward P/E of 11.05.
We can also see that SHEL currently has a PEG ratio of 3.52. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 207, this industry ranks in the bottom 16% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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