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Shell (SHEL) Gains But Lags Market: What You Should Know

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Shell (SHEL - Free Report) closed at $56.67 in the latest trading session, marking a +0.19% move from the prior day. This change lagged the S&P 500's 1.75% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.

Heading into today, shares of the oil and gas company had lost 3.27% over the past month, lagging the Oils-Energy sector's loss of 3.11% and outpacing the S&P 500's loss of 4.4% in that time.

Wall Street will be looking for positivity from Shell as it approaches its next earnings report date. On that day, Shell is projected to report earnings of $2.48 per share, which would represent year-over-year growth of 50.3%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.46 per share and revenue of $455.11 billion. These totals would mark changes of +111.31% and +66.92%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Shell. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 1.21% lower within the past month. Shell is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Shell is holding a Forward P/E ratio of 5.41. For comparison, its industry has an average Forward P/E of 4.97, which means Shell is trading at a premium to the group.

Meanwhile, SHEL's PEG ratio is currently 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.62 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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