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Shell Oil (RDS.A) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Shell Oil (RDS.A - Free Report) closed at $59.01, marking a -1.12% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the oil and gas company had gained 3.32% in the past month. In that same time, the Oils-Energy sector gained 6.26%, while the S&P 500 gained 4.56%.

Wall Street will be looking for positivity from RDS.A as it approaches its next earnings report date. This is expected to be January 30, 2020. The company is expected to report EPS of $1.08, down 21.17% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for RDS.A. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RDS.A is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that RDS.A has a Forward P/E ratio of 11.72 right now. This represents a discount compared to its industry's average Forward P/E of 14.68.

We can also see that RDS.A currently has a PEG ratio of 2.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 2 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 201, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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 RDS.A in the coming trading sessions, be sure to utilize Zacks.com.


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