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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 $44.15, moving +0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the oil and gas company had lost 0.5% over the past month. This has was narrower than the Oils-Energy sector's loss of 4.01% and lagged the S&P 500's loss of 0.21% in that time.

Wall Street will be looking for positivity from Shell Oil as it approaches its next earnings report date. In that report, analysts expect Shell Oil to post earnings of $1.59 per share. This would mark year-over-year growth of 1490%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.02 per share and revenue of $350.18 billion, which would represent changes of +304.84% and +91.15%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Shell Oil. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. Shell Oil is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Shell Oil is holding a Forward P/E ratio of 8.78. This valuation marks a premium compared to its industry's average Forward P/E of 7.99.

It is also worth noting that RDS.A currently has a PEG ratio of 2.19. 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. RDS.A's industry had an average PEG ratio of 0.71 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 161, putting it in the bottom 37% 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.

To follow RDS.A in the coming trading sessions, be sure to utilize Zacks.com.

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