Shell (SHEL) Ascends While Market Falls: Some Facts to Note

In the latest close session, Shell (SHEL) was up +2.55% at $95.32. The stock outpaced the S&P 500's daily loss of 0.58%. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.

Heading into today, shares of the oil and gas company had gained 3.34% over the past month, lagging the Oils-Energy sector's gain of 6.77% and outpacing the S&P 500's loss of 0.36%.

Market participants will be closely following the financial results of Shell in its upcoming release. The company's earnings per share (EPS) are projected to be $2.85, reflecting a 53.23% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $78.38 billion, indicating a 11.32% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.53 per share and revenue of $380.07 billion, which would represent changes of +67.14% and +38.85%, respectively, from the prior year.

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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 1.58% higher. Currently, Shell is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Shell has a Forward P/E ratio of 8.83 right now. For comparison, its industry has an average Forward P/E of 8.64, which means Shell is trading at a premium to the group.

We can additionally observe that SHEL currently boasts a PEG ratio of 0.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - International industry had an average PEG ratio of 0.79 as trading concluded yesterday.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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