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Shell Oil (RDS.A) Gains As Market Dips: What You Should Know

Zacks Equity Research

Shell Oil (RDS.A) closed the most recent trading day at $64.58, moving +0.44% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Prior to today's trading, shares of the oil and gas company had gained 0.55% over the past month. This has outpaced the Oils-Energy sector's gain of 0.23% and lagged the S&P 500's gain of 3.16% 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 May 2, 2019. The company is expected to report EPS of $1.05, down 17.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $83 billion, down 8.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $411.61 billion, which would represent changes of +0.97% and +4.16%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RDS.A. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.97% higher. RDS.A is currently a Zacks Rank #2 (Buy).

Investors should also note RDS.A's current valuation metrics, including its Forward P/E ratio of 12.35. This represents a premium compared to its industry's average Forward P/E of 11.57.

It is also worth noting that RDS.A currently has a PEG ratio of 1.61. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% 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.

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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