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Shell Oil (RDS.A) Gains But Lags Market: What You Should Know

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Shell Oil closed the most recent trading day at $57.80, moving +0.17% from the previous trading session. This change lagged the S&P 500's 0.86% gain on the day. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the oil and gas company had lost 4.97% in the past month. In that same time, the Oils-Energy sector lost 9.09%, while the S&P 500 lost 7.55%.

Investors will be hoping for strength from RDS.A as it approaches its next earnings release, which is expected to be January 31, 2019. In that report, analysts expect RDS.A to post earnings of $1.55 per share. This would mark year-over-year growth of 49.04%.

Any recent changes to analyst estimates for RDS.A should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.21% lower within the past month. RDS.A is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, RDS.A is currently trading at a Forward P/E ratio of 10.89. For comparison, its industry has an average Forward P/E of 9.7, which means RDS.A is trading at a premium to the group.

We can also see that RDS.A currently has a PEG ratio of 1.09. 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 1.08 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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