Shell (SHEL) closed at $52.49 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Heading into today, shares of the oil and gas company had lost 0.61% over the past month, lagging the Oils-Energy sector's loss of 0.21% and outpacing the S&P 500's loss of 9.94% in that time.
Shell will be looking to display strength as it nears its next earnings release. In that report, analysts expect Shell to post earnings of $2.89 per share. This would mark year-over-year growth of 172.64%.
Any recent changes to analyst estimates for Shell should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Shell currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Shell is currently trading at a Forward P/E ratio of 4.6. This represents a premium compared to its industry's average Forward P/E of 4.07.
Investors should also note that SHEL has a PEG ratio of 0.5 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.35 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 30, putting it in the top 12% 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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