In the latest trading session, Shell (SHEL) closed at $57.70, marking a -0.02% move from the previous day. This change lagged the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.
Coming into today, shares of the oil and gas company had lost 5.18% in the past month. In that same time, the Oils-Energy sector lost 0.17%, while the S&P 500 gained 3.56%.
Wall Street will be looking for positivity from Shell as it approaches its next earnings report date. On that day, Shell is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 46.38%.
Investors might also notice recent changes to analyst estimates for Shell. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.92% higher. Shell is currently a Zacks Rank #3 (Hold).
Investors should also note Shell's current valuation metrics, including its Forward P/E ratio of 6.24. For comparison, its industry has an average Forward P/E of 5.6, which means Shell is trading at a premium to the group.
We can also see that SHEL currently has a PEG ratio of 0.67. 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 was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SHEL in the coming trading sessions, be sure to utilize Zacks.com.
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