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Here's Why Shell (SHEL) Gained But Lagged the Market Today
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Shell (SHEL - Free Report) closed the latest trading day at $71.52, indicating a +0.77% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.
The oil and gas company's shares have seen an increase of 4.64% over the last month, surpassing the Oils-Energy sector's loss of 2.69% and the S&P 500's loss of 8.26%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.95, showcasing a 18.07% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $79.93 billion, up 7% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.75 per share and revenue of $305.47 billion, indicating changes of +3.06% and +5.69%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Shell. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 2.33% lower. Shell is currently a Zacks Rank #3 (Hold).
With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 9.16. This indicates a premium in contrast to its industry's Forward P/E of 8.07.
It's also important to note that SHEL currently trades at a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International industry had an average PEG ratio of 1.12 as trading concluded 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 152, placing it within the bottom 40% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Shell (SHEL) Gained But Lagged the Market Today
Shell (SHEL - Free Report) closed the latest trading day at $71.52, indicating a +0.77% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.
The oil and gas company's shares have seen an increase of 4.64% over the last month, surpassing the Oils-Energy sector's loss of 2.69% and the S&P 500's loss of 8.26%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.95, showcasing a 18.07% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $79.93 billion, up 7% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.75 per share and revenue of $305.47 billion, indicating changes of +3.06% and +5.69%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Shell. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 2.33% lower. Shell is currently a Zacks Rank #3 (Hold).
With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 9.16. This indicates a premium in contrast to its industry's Forward P/E of 8.07.
It's also important to note that SHEL currently trades at a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International industry had an average PEG ratio of 1.12 as trading concluded 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 152, placing it within the bottom 40% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.