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

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In the latest trading session, Shell Oil (RDS.A - Free Report) closed at $38.64, marking a +0.84% move from the previous day. The stock lagged the S&P 500's daily gain of 0.93%.

Prior to today's trading, shares of the oil and gas company had lost 4.74% over the past month. This has lagged the Oils-Energy sector's loss of 4.5% and the S&P 500's gain of 5.84% in that time.

RDS.A will be looking to display strength as it nears its next earnings release, which is expected to be April 29, 2021. In that report, analysts expect RDS.A to post earnings of $0.83 per share. This would mark year-over-year growth of 12.16%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.19 per share and revenue of $307.09 billion. These totals would mark changes of +237.9% and +67.63%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for RDS.A. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. The Zacks Consensus EPS estimate has moved 12.78% higher within the past month. RDS.A currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, RDS.A is currently trading at a Forward P/E ratio of 9.43. This valuation marks a discount compared to its industry's average Forward P/E of 11.25.

It is also worth noting that RDS.A currently has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.24 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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