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Why the Market Dipped But Shell (SHEL) Gained Today

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Shell (SHEL - Free Report) closed at $73.03 in the latest trading session, marking a +1.39% move from the prior day. This change outpaced the S&P 500's 1.12% loss on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 2.04%.

The oil and gas company's stock has climbed by 7.67% in the past month, exceeding the Oils-Energy sector's gain of 3.39% and the S&P 500's loss of 2.91%.

Market participants will be closely following the financial results of Shell in its upcoming release. The company's earnings per share (EPS) are projected to be $1.79, reflecting a 24.79% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $79.93 billion, indicating a 7% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.36 per share and a revenue of $305.47 billion, demonstrating changes of -2.13% and +5.69%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shell. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.62% lower. Shell presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Shell is currently exchanging hands at a Forward P/E ratio of 9.78. Its industry sports an average Forward P/E of 8.36, so one might conclude that Shell is trading at a premium comparatively.

One should further note that SHEL currently holds a PEG ratio of 1.17. 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 industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 39% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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