In the latest trading session, Shell Oil closed at $51.11, marking a +0.39% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Prior to today's trading, shares of the oil and gas company had gained 16.55% over the past month. This has outpaced the Oils-Energy sector's gain of 10.99% and the S&P 500's loss of 7.87% in that time.
Investors will be hoping for strength from Shell Oil as it approaches its next earnings release, which is expected to be February 3, 2022. The company is expected to report EPS of $1.40, up 1300% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Shell Oil. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 4.78% higher. Shell Oil is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Shell Oil has a Forward P/E ratio of 7.44 right now. For comparison, its industry has an average Forward P/E of 6.06, which means Shell Oil is trading at a premium to the group.
It is also worth noting that RDS.A currently has a PEG ratio of 1.86. 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 was holding an average PEG ratio of 0.66 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.