Shell Oil (RDS.A) closed at $43.52 in the latest trading session, marking a +1.09% move from the prior day. This move outpaced the S&P 500’s daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Heading into today, shares of the oil and gas company had lost 2.34% over the past month, lagging the Oils-Energy sector’s of 0% and the S&P 500’s loss of 0.91% in that time.
Investors will be hoping for strength from Shell Oil as it approaches its next earnings release. In that report, analysts expect Shell Oil to post earnings of $1.58 per share. This would mark year-over-year growth of 1480%.
RDS.A’s full-year Zacks Consensus Estimates are calling for earnings of $5.01 per share and revenue of $350.18 billion. These results would represent year-over-year changes of +304.03% and +91.15%, respectively.
Any recent changes to analyst estimates for Shell Oil should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.15% lower. Shell Oil is currently a Zacks Rank #3 (Hold).
Investors should also note Shell Oil’s current valuation metrics, including its Forward P/E ratio of 8.6. This represents a premium compared to its industry’s average Forward P/E of 7.79.
Also, we should mention that RDS.A has a PEG ratio of 2.15. 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 0.69 based on yesterday’s closing prices.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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