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

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In the latest trading session, Shell (SHEL - Free Report) closed at $74.35, marking a +1.6% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1%.

Shares of the oil and gas company witnessed a gain of 3.86% over the previous month, beating the performance of the Oils-Energy sector with its gain of 1.82%, and the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Shell in its upcoming release. The company is predicted to post an EPS of $1.32, indicating a 10% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $72.39 billion, indicating a 8.35% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.4 per share and revenue of $270.52 billion, indicating changes of -14.89% and 0%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 shifted 3.1% downward. Shell is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Shell currently has a Forward P/E ratio of 11.95. This indicates a premium in contrast to its industry's Forward P/E of 11.62.

Also, we should mention that SHEL has a PEG ratio of 5.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 2.12.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 236, finds itself in the bottom 4% echelons of all 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.

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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