In the latest market close, Shell (SHEL) reached $66.64, with a +0.85% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.47% for the day. Elsewhere, the Dow saw an upswing of 0.79%, while the tech-heavy Nasdaq appreciated by 0.28%.
Shares of the oil and gas company have depreciated by 3.04% over the course of the past month, outperforming the Oils-Energy sector's loss of 6.86% and lagging the S&P 500's gain of 3.48%.
The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. The company is slated to reveal its earnings on October 31, 2024. The company's earnings per share (EPS) are projected to be $1.72, reflecting a 7.53% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $84.58 billion, showing an 8.43% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.46 per share and revenue of $312.31 billion, indicating changes of +0.71% and -3.36%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shell. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% downward. Shell presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Shell is currently exchanging hands at a Forward P/E ratio of 7.81. This denotes a discount relative to the industry's average Forward P/E of 7.98.
Meanwhile, SHEL's PEG ratio is currently 1.52. 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 1.52 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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