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Shell Oil (RDS.A) Gains But Lags Market: What You Should Know

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Shell Oil (RDS.A - Free Report) closed at $60.42 in the latest trading session, marking a +0.02% move from the prior day. This move lagged the S&P 500's daily gain of 1.07%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 1.71%.

Heading into today, shares of the oil and gas company had gained 4.68% over the past month, outpacing the Oils-Energy sector's gain of 2.03% and the S&P 500's loss of 0.58% in that time.

Wall Street will be looking for positivity from RDS.A as it approaches its next earnings report date. This is expected to be January 31, 2019. The company is expected to report EPS of $1.47, up 41.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $99.30 billion, up 16.24% from the year-ago period.

Investors might also notice recent changes to analyst estimates for RDS.A. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.4% lower. RDS.A is currently sporting a Zacks Rank of #5 (Strong Sell).

Investors should also note RDS.A's current valuation metrics, including its Forward P/E ratio of 11.02. For comparison, its industry has an average Forward P/E of 9.95, which means RDS.A is trading at a premium to the group.

It is also worth noting that RDS.A currently has a PEG ratio of 1.32. 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.14 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 251, putting it in the bottom 2% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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