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Shell (SHEL) Rises Higher Than Market: Key Facts

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Shell (SHEL - Free Report) ended the recent trading session at $73.13, demonstrating a +0.49% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.02%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.1%.

Coming into today, shares of the oil and gas company had gained 9% in the past month. In that same time, the Oils-Energy sector gained 4.26%, while the S&P 500 lost 3.01%.

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 $1.87 per share. This would mark a year-over-year decline of 32.73%. Simultaneously, our latest consensus estimate expects the revenue to be $88.03 billion, showing a 1.11% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.16 per share and revenue of $364.86 billion, which would represent changes of -2.86% and +12.89%, respectively, from the prior year.

Any recent changes to analyst estimates for Shell should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. Currently, Shell is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Shell is currently trading at a Forward P/E ratio of 8.91. This valuation marks a premium compared to its industry's average Forward P/E of 7.32.

Meanwhile, SHEL's PEG ratio is currently 1.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.73 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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