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Shell (SHEL) ended the recent trading session at $72.72, demonstrating a -0.45% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.87%.
Shares of the oil and gas company have appreciated by 10.35% over the course of the past month, outperforming the Oils-Energy sector's gain of 3.06% and the S&P 500's loss of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. On that day, Shell is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 30.67%. Simultaneously, our latest consensus estimate expects the revenue to be $79.72 billion, showing a 6.72% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.22 per share and a revenue of $305.26 billion, indicating changes of -3.99% and +5.62%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed a 5.54% decrease. As of now, Shell holds a Zacks Rank of #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 10.12. This indicates a premium in contrast to its industry's Forward P/E of 8.47.
We can additionally observe that SHEL currently boasts a PEG ratio of 1.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.39.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 140, finds itself in the bottom 44% echelons of all 250+ industries.