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Shell (SHEL) Stock Dips While Market Gains: Key Facts

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The latest trading session saw Shell (SHEL - Free Report) ending at $64.62, denoting a -1.69% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.41%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.

The oil and gas company's shares have seen an increase of 2.48% over the last month, not keeping up with the Oils-Energy sector's gain of 3.47% and the S&P 500's gain of 2.9%.

The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. The company is slated to reveal its earnings on February 1, 2024. It is anticipated that the company will report an EPS of $2.09, marking a 24.28% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $90.92 billion, showing a 10.15% drop compared to the year-ago quarter.

Any recent changes to analyst estimates for Shell should also be noted by investors. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.09% higher. Right now, Shell possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 7.84. This expresses a premium compared to the average Forward P/E of 6.64 of its industry.

Also, we should mention that SHEL has a PEG ratio of 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Integrated - International industry stood at 0.84 at the close of the market yesterday.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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