In the latest trading session, Shell (SHEL) closed at $71.26, marking a +2.06% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.07% for the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.03%.
Prior to today's trading, shares of the oil and gas company had gained 2.29% lagged the Oils-Energy sector's gain of 3.17% and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.56, reflecting a 20.81% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.34 billion, down 0.95% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.36 per share and revenue of $291.12 billion, which would represent changes of -15.43% and +0.72%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.47% higher. Shell is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Shell's current valuation metrics, including its Forward P/E ratio of 10.97. Its industry sports an average Forward P/E of 10.77, so one might conclude that Shell is trading at a premium comparatively.
We can also see that SHEL currently has a PEG ratio of 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 35% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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