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Shell (SHEL) Surpasses Market Returns: Some Facts Worth Knowing

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Shell (SHEL - Free Report) closed at $67.45 in the latest trading session, marking a +0.7% move from the prior day. This move outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.

Prior to today's trading, shares of the oil and gas company had lost 8.46% over the past month. This has lagged the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 4.86% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. In that report, analysts expect Shell to post earnings of $1.73 per share. This would mark a year-over-year decline of 6.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $86.4 billion, up 10.75% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $347.2 billion. These totals would mark changes of +2.5% and +7.43%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Shell. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% lower. Shell is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Shell is presently being traded at a Forward P/E ratio of 7.78. This denotes a premium relative to the industry's average Forward P/E of 7.65.

We can additionally observe that SHEL currently boasts a PEG ratio of 1.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SHEL's industry had an average PEG ratio of 1.51 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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