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Shell (SHEL) Stock Sinks As Market Gains: Here's Why
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In the latest close session, Shell (SHEL - Free Report) was down 2% at $73.01. This change lagged the S&P 500's 0.19% gain on the day. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.31%.
Prior to today's trading, shares of the oil and gas company had gained 0.38% lagged the Oils-Energy sector's gain of 5.31% and the S&P 500's gain of 1.33%.
The upcoming earnings release of Shell will be of great interest to investors. It is anticipated that the company will report an EPS of $1.32, marking a 10% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $73.13 billion, up 9.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.52 per share and a revenue of $271.56 billion, representing changes of -13.3% and -6.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Shell should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.23% downward. Shell is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 11.43. For comparison, its industry has an average Forward P/E of 11.25, which means Shell is trading at a premium to the group.
One should further note that SHEL currently holds a PEG ratio of 1.49. 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 Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
To follow SHEL in the coming trading sessions, be sure to utilize Zacks.com.
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Shell (SHEL) Stock Sinks As Market Gains: Here's Why
In the latest close session, Shell (SHEL - Free Report) was down 2% at $73.01. This change lagged the S&P 500's 0.19% gain on the day. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.31%.
Prior to today's trading, shares of the oil and gas company had gained 0.38% lagged the Oils-Energy sector's gain of 5.31% and the S&P 500's gain of 1.33%.
The upcoming earnings release of Shell will be of great interest to investors. It is anticipated that the company will report an EPS of $1.32, marking a 10% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $73.13 billion, up 9.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.52 per share and a revenue of $271.56 billion, representing changes of -13.3% and -6.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Shell should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.23% downward. Shell is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 11.43. For comparison, its industry has an average Forward P/E of 11.25, which means Shell is trading at a premium to the group.
One should further note that SHEL currently holds a PEG ratio of 1.49. 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 Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
To follow SHEL in the coming trading sessions, be sure to utilize Zacks.com.