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Shell (SHEL) Outpaces Stock Market Gains: What You Should Know

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Shell (SHEL - Free Report) closed the most recent trading day at $60.80, moving +0.38% from the previous trading session. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.

Coming into today, shares of the oil and gas company had gained 0.35% in the past month. In that same time, the Oils-Energy sector lost 2.04%, while the S&P 500 gained 3.13%.

Investors will be hoping for strength from Shell as it approaches its next earnings release, which is expected to be May 4, 2023. On that day, Shell is projected to report earnings of $2.24 per share, which would represent a year-over-year decline of 5.88%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.18 per share and revenue of $392.81 billion, which would represent changes of -14.68% and +1.71%, respectively, from the prior year.

Investors should also note any 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. 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 4.1% lower. Shell is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Shell is holding a Forward P/E ratio of 6.6. This valuation marks a premium compared to its industry's average Forward P/E of 5.6.

It is also worth noting that SHEL currently has a PEG ratio of 0.69. 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 0.75 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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