In the latest close session, Shell (SHEL) was up +2.55% at $95.32. The stock outpaced the S&P 500’s daily loss of 0.58%. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the oil and gas company had gained 3.34% over the past month, lagging the Oils-Energy sector’s gain of 6.77% and outpacing the S&P 500’s loss of 0.36%.
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 $2.85, reflecting a 53.23% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $78.38 billion, indicating a 11.32% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.53 per share and revenue of $380.07 billion, which would represent changes of +67.14% and +38.85%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Within the past 30 days, our consensus EPS projection has moved 1.58% higher. Currently, Shell is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shell has a Forward P/E ratio of 8.83 right now. For comparison, its industry has an average Forward P/E of 8.64, which means Shell is trading at a premium to the group.
We can additionally observe that SHEL currently boasts a PEG ratio of 0.85. 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 industry had an average PEG ratio of 0.79 as trading concluded yesterday.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.