In the latest trading session, Shell (SHEL) closed at $60.20, marking a +1.01% move from the previous day. This move outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 3.58%.
Prior to today's trading, shares of the oil and gas company had gained 1.39% over the past month. This has outpaced the Oils-Energy sector's loss of 1.31% and lagged the S&P 500's gain of 5.01% in that time.
Wall Street will be looking for positivity from Shell as it approaches its next earnings report date. In that report, analysts expect Shell to post earnings of $1.43 per share. This would mark a year-over-year decline of 52.96%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.94 per share and revenue of $378.54 billion, which would represent changes of -16.91% and -1.98%, respectively, from the prior year.
Any recent changes to analyst estimates for Shell should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.27% lower within the past month. Shell currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 6.67. Its industry sports an average Forward P/E of 5.45, so we one might conclude that Shell is trading at a premium comparatively.
Investors should also note that SHEL has a PEG ratio of 0.71 right now. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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