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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 1.88% at $72.42. This change lagged the S&P 500's 0.55% gain on the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.91%.
Shares of the oil and gas company witnessed a gain of 1.33% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 7.71%, and outperforming the S&P 500's gain of 0.71%.
Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.21, marking a 0.83% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $72.39 billion, up 8.35% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.28 per share and a revenue of $270.25 billion, signifying shifts of -16.49% and 0%, respectively, from the last year.
Investors should also pay attention to any latest changes in 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 3.07% lower within the past month. At present, Shell boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Shell is at present trading with a Forward P/E ratio of 12.05. For comparison, its industry has an average Forward P/E of 12.02, which means Shell is trading at a premium to the group.
It's also important to note that SHEL currently trades at a PEG ratio of 5.5. 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 had an average PEG ratio of 2.23 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.
View the Zacks #1 Rank List
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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 1.88% at $72.42. This change lagged the S&P 500's 0.55% gain on the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.91%.
Shares of the oil and gas company witnessed a gain of 1.33% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 7.71%, and outperforming the S&P 500's gain of 0.71%.
Analysts and investors alike will be keeping a close eye on the performance of Shell in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.21, marking a 0.83% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $72.39 billion, up 8.35% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.28 per share and a revenue of $270.25 billion, signifying shifts of -16.49% and 0%, respectively, from the last year.
Investors should also pay attention to any latest changes in 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 3.07% lower within the past month. At present, Shell boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Shell is at present trading with a Forward P/E ratio of 12.05. For comparison, its industry has an average Forward P/E of 12.02, which means Shell is trading at a premium to the group.
It's also important to note that SHEL currently trades at a PEG ratio of 5.5. 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 had an average PEG ratio of 2.23 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.