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Shell (SHEL) Declines More Than Market: Some Information for Investors

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In the latest trading session, Shell (SHEL - Free Report) closed at $65.39, marking a -1.91% move from the previous day. This move lagged the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.

Prior to today's trading, shares of the oil and gas company had gained 8.64% over the past month. This has outpaced the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52% in that time.

Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 30, 2025. The company's earnings per share (EPS) are projected to be $1.78, reflecting a 19.82% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $80.1 billion, indicating a 0.03% downward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Shell. Recent revisions tend to reflect the latest near-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.

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 last 30 days, the Zacks Consensus EPS estimate has moved 3.11% lower. Shell currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Shell is currently being traded at a Forward P/E ratio of 9.17. This represents a premium compared to its industry's average Forward P/E of 9.1.

Investors should also note that SHEL has a PEG ratio of 5.96 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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