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Shell (SHEL) Gains But Lags Market: What You Should Know

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In the latest trading session, Shell (SHEL - Free Report) closed at $64.96, marking a +0.03% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. On the other hand, the Dow registered a gain of 0.86%, and the technology-centric Nasdaq decreased by 0.38%.

Heading into today, shares of the oil and gas company had gained 2.2% over the past month, outpacing the Oils-Energy sector's loss of 9.81% and the S&P 500's loss of 2.2% in that time.

The investment community will be closely monitoring the performance of Shell in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.86, reflecting a 16.22% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $78.94 billion, indicating a 1.48% decrease compared to the same quarter of the previous year.

Any recent changes to analyst estimates for Shell should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 5.6% lower. Currently, Shell is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Shell is presently being traded at a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 8.67, which means Shell is trading at a premium to the group.

We can additionally observe that SHEL currently boasts a PEG ratio of 5.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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