Back to top

Image: Bigstock

Shell (SHEL) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Shell (SHEL - Free Report) closed at $50.08 in the latest trading session, marking a +0.95% move from the prior day. This change outpaced the S&P 500's 2.11% loss on the day. Elsewhere, the Dow lost 1.54%, while the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the oil and gas company had lost 6.36% over the past month, outpacing the Oils-Energy sector's loss of 11.61% and the S&P 500's loss of 8.19% in that time.

Investors will be hoping for strength from Shell as it approaches its next earnings release. On that day, Shell is projected to report earnings of $3.03 per share, which would represent year-over-year growth of 185.85%.

SHEL's full-year Zacks Consensus Estimates are calling for earnings of $11.57 per share and revenue of $450.45 billion. These results would represent year-over-year changes of +133.74% and +65.21%, respectively.

Investors might also notice recent changes to analyst estimates for Shell. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.44% higher. Shell is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Shell is holding a Forward P/E ratio of 4.29. Its industry sports an average Forward P/E of 3.9, so we one might conclude that Shell is trading at a premium comparatively.

Investors should also note that SHEL has a PEG ratio of 0.47 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.36 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 32, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Shell PLC Unsponsored ADR (SHEL) - free report >>

Published in