In the latest close session, Shell (SHEL) was down 1.34% at $91.36. The stock's performance was behind the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.96%.
The oil and gas company's stock has climbed by 2.34% in the past month, paralleling the Oils-Energy sector and lagging the S&P 500's gain of 3.93%.
Investors will be eagerly watching for the performance of Shell in its upcoming earnings disclosure. In that report, analysts expect Shell to post earnings of $1.87 per share. This would mark year-over-year growth of 1.63%. In the meantime, our current consensus estimate forecasts the revenue to be $72.48 billion, indicating a 3.32% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.05 per share and a revenue of $304.43 billion, indicating changes of +43.65% and +11.22%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has shifted 29.83% upward. Right now, Shell possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Shell is presently being traded at a Forward P/E ratio of 10.23. For comparison, its industry has an average Forward P/E of 10.1, which means Shell is trading at a premium to the group.
We can additionally observe that SHEL currently boasts a PEG ratio of 0.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 0.64.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 3% 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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Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).