In the latest trading session, Shell Oil (RDS.A - Free Report) closed at $59.21, marking a -0.22% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.48%. Elsewhere, the Dow lost 2.83%, while the tech-heavy Nasdaq lost 3.04%.
Coming into today, shares of the oil and gas company had lost 2.22% in the past month. In that same time, the Oils-Energy sector lost 8.19%, while the S&P 500 lost 8.82%.
RDS.A will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2019. In that report, analysts expect RDS.A to post earnings of $1.48 per share. This would mark year-over-year growth of 42.31%. Our most recent consensus estimate is calling for quarterly revenue of $101.78 billion, up 19.15% from the year-ago period.
It is also important to note the recent changes to analyst estimates for RDS.A. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 6.64% lower. RDS.A is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that RDS.A has a Forward P/E ratio of 10.51 right now. Its industry sports an average Forward P/E of 9.6, so we one might conclude that RDS.A is trading at a premium comparatively.
We can also see that RDS.A currently has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. RDS.A's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 248, putting it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.