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Shell Oil (RDS.A) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Shell Oil (RDS.A - Free Report) closed at $40.95, marking a +1.39% move from the previous day. This change outpaced the S&P 500's 1.13% gain on the day.

Coming into today, shares of the oil and gas company had gained 0.7% in the past month. In that same time, the Oils-Energy sector lost 5.86%, while the S&P 500 gained 2.39%.

RDS.A will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2021. The company is expected to report EPS of $1.01, up 531.25% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.41 per share and revenue of $317.45 billion, which would represent changes of +255.65% and +73.29%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RDS.A. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.04% higher. RDS.A currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that RDS.A has a Forward P/E ratio of 9.16 right now. Its industry sports an average Forward P/E of 8.5, so we one might conclude that RDS.A is trading at a premium comparatively.

Investors should also note that RDS.A has a PEG ratio of 2.29 right now. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 0.64 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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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