Shell (SHEL) closed at $63.54 in the latest trading session, marking a -0.72% move from the prior day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.12%.
The the stock of oil and gas company has fallen by 2.72% in the past month, lagging the Oils-Energy sector's loss of 1.64% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2, marking a 9.91% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $78.94 billion, indicating a 1.48% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.52 per share and a revenue of $301.17 billion, indicating changes of +1.43% and -6.81%, respectively, from the former year.
Any recent changes to analyst estimates for Shell should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. Currently, Shell is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Shell is at present trading with a Forward P/E ratio of 7.52. This represents a discount compared to its industry's average Forward P/E of 8.
Also, we should mention that SHEL has a PEG ratio of 4.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Integrated - International industry stood at 2.12 at the close of the market yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
