In the latest close session, Shell (SHEL) was up +1.02% at $72.65. The stock outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.03%.
The stock of oil and gas company has fallen by 0.46% in the past month, lagging the Oils-Energy sector's gain of 1.33% and the S&P 500's gain of 2.09%.
Market participants will be closely following the financial results of Shell in its upcoming release. The company is expected to report EPS of $1.46, down 23.96% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $73.69 billion, indicating a 1.69% upward movement from the same quarter last year.
SHEL's full-year Zacks Consensus Estimates are calling for earnings of $6.09 per share and revenue of $282.18 billion. These results would represent year-over-year changes of -19.02% and -2.37%, respectively.
Investors should also note any recent changes 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 business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.39% higher. Right now, Shell possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Shell is currently trading at a Forward P/E ratio of 11.81. This signifies a premium in comparison to the average Forward P/E of 10.52 for its industry.
It's also important to note that SHEL currently trades at a PEG ratio of 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas – Integrated – International was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
