Shell (SHEL) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest close session, Shell (SHEL) was down 1.04% at $92.03. The stock's performance was behind the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 1.16%.

The oil and gas company's stock has climbed by 12.96% in the past month, exceeding the Oils-Energy sector's gain of 9.32% and the S&P 500's loss of 4.99%.

The investment community will be paying close attention to the earnings performance of Shell in its upcoming release. On that day, Shell is projected to report earnings of $1.86 per share, which would represent year-over-year growth of 1.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $72.48 billion, up 3.32% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.74 per share and a revenue of $302.94 billion, representing changes of +22.86% and +10.67%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Shell. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 23.08% higher within the past month. Shell presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Shell is currently exchanging hands at a Forward P/E ratio of 12.01. This represents a premium compared to its industry average Forward P/E of 10.99.

Meanwhile, SHEL's PEG ratio is currently 1.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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