The most recent trading session ended with Shell (SHEL) standing at $64.65, reflecting a -0.6% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 2.36% loss on the day. At the same time, the Dow lost 2.48%, and the tech-heavy Nasdaq lost 2.55%.
The oil and gas company's shares have seen a decrease of 8.41% over the last month, surpassing the Oils-Energy sector's loss of 9.26% and falling behind the S&P 500's loss of 5.6%.
The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. On that day, Shell is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 33.19%. At the same time, our most recent consensus estimate is projecting a revenue of $79.93 billion, reflecting a 7% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.68 per share and revenue of $294.78 billion, which would represent changes of -11.17% and +1.99%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 9.3% lower within the past month. Shell presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 9.74. For comparison, its industry has an average Forward P/E of 8.32, which means Shell is trading at a premium to the group.
Also, we should mention that SHEL has a PEG ratio of 1.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.37.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many 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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