In the latest trading session, Shell (SHEL) closed at $85.59, marking a +1.05% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.83%. Meanwhile, the Dow experienced a rise of 0.5%, and the technology-dominated Nasdaq saw an increase of 1.38%.
Shares of the oil and gas company witnessed a gain of 12.5% over the previous month, beating the performance of the Oils-Energy sector with its gain of 7.08%, and the S&P 500's loss of 2.65%.
The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. The company's earnings per share (EPS) are projected to be $1.71, reflecting a 7.07% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $69.15 billion, showing a 1.42% drop compared to the year-ago quarter.
SHEL's full-year Zacks Consensus Estimates are calling for earnings of $6.29 per share and revenue of $271.25 billion. These results would represent year-over-year changes of -0.16% and -0.91%, respectively.
Investors should also note any recent changes to analyst estimates for Shell. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.17% higher. As of now, Shell holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shell has a Forward P/E ratio of 13.46 right now. Its industry sports an average Forward P/E of 12.78, so one might conclude that Shell is trading at a premium comparatively.
We can also see that SHEL currently has a PEG ratio of 6.15. 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 the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 1.55.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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