In the latest close session, Shell (SHEL) was up +1.54% at $72.54. The stock's performance was ahead of the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
Shares of the oil and gas company have appreciated by 6.01% over the course of the past month, outperforming the Oils-Energy sector's gain of 5.03%, and the S&P 500's gain of 3.55%.
The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. The company is predicted to post an EPS of $1.47, indicating a 25.38% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $68.87 billion, down 8.25% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.15 per share and revenue of $273.19 billion, indicating changes of -18.22% and -5.48%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shell. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 2.61% lower. Shell currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Shell is currently trading at a Forward P/E ratio of 11.62. This represents a premium compared to its industry average Forward P/E of 10.88.
It is also worth noting that SHEL currently has a PEG ratio of 1.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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. With its current Zacks Industry Rank of 217, this industry ranks in the bottom 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.
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
