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The most recent trading session ended with Shell (SHEL) standing at $60.78, reflecting a +0.25% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.09%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the oil and gas company had lost 7.34% over the past month, outpacing the Oils-Energy sector's loss of 9.43% and lagging the S&P 500's loss of 0.29% in that time.
The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. The company's upcoming EPS is projected at $1.99, signifying a 10.36% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $78.94 billion, indicating a 1.48% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.48 per share and revenue of $301.17 billion, which would represent changes of +0.95% and -6.81%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shell. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.54% lower within the past month. Shell is currently a Zacks Rank #3 (Hold).
Looking at valuation, Shell is presently trading at a Forward P/E ratio of 7.15. For comparison, its industry has an average Forward P/E of 7.62, which means Shell is trading at a discount to the group.
It's also important to note that SHEL currently trades at a PEG ratio of 4.64. 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 2.02 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 33% of all industries, numbering over 250.