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Shell Oil (RDS.A) Outpaces Stock Market Gains: What You Should Know

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  • RDS-A

Shell Oil (RDS.A) closed at $48.71 in the latest trading session, marking a +1.29% move from the prior day. This move outpaced the S&P 500's daily gain of 0.75%.

Prior to today's trading, shares of the oil and gas company had gained 17.69% over the past month. This has outpaced the Oils-Energy sector's gain of 14.35% and the S&P 500's loss of 0.05% 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 October 28, 2021. On that day, RDS.A is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 470.83%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.38 per share and revenue of $349.45 billion. These totals would mark changes of +333.87% and +90.75%, respectively, from last year.

Any recent changes to analyst estimates for RDS.A should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 6.06% higher within the past month. RDS.A currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note RDS.A's current valuation metrics, including its Forward P/E ratio of 8.94. Its industry sports an average Forward P/E of 8.67, so we one might conclude that RDS.A is trading at a premium comparatively.

Investors should also note that RDS.A has a PEG ratio of 2.23 right now. 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 0.64 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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