Shell Oil (RDS.A) closed at $49.24 in the latest trading session, marking a -0.12% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the oil and gas company had gained 15.11% over the past month. This has outpaced the Oils-Energy sector's gain of 8.29% and the S&P 500's gain of 0.39% in that time.
Shell Oil will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect Shell Oil to post earnings of $1.39 per share. This would mark year-over-year growth of 1290%.
It is also important to note the recent changes to analyst estimates for Shell Oil. 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 3.35% higher. Shell Oil currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shell Oil has a Forward P/E ratio of 7.42 right now. This represents a premium compared to its industry's average Forward P/E of 6.23.
It is also worth noting that RDS.A currently has a PEG ratio of 1.86. 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 industry currently had an average PEG ratio of 0.67 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 65, putting it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
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