Shell (SHEL) Rallies 0.86% on Three-Day Surge to 2025 High on Renewed Investor Confidence

Shell (SHEL) shares rose 0.86% on Monday, marking three consecutive days of gains with a 4.38% increase over the past three trading sessions. The stock hit its highest level since October 2025, with an intraday high of 1.09% above its previous close, signaling renewed investor confidence in the energy giant.

Recent analyst estimates and valuation metrics highlight mixed signals for the stock. While projected revenue for the current quarter is expected to rise 1.69% year-over-year to $73.69 billion, earnings per share (EPS) are forecast to decline by 23.96% to $1.46, reflecting margin pressures. Analysts have revised EPS estimates upward by 1.27% in the past month, but the Zacks Rank of #3 (Hold) suggests a neutral outlook, indicating no immediate catalysts for outperformance.

Valuation indicators further complicate the picture. Shell trades at a Forward P/E ratio of 11.87, slightly above the industry average, and a PEG ratio of 1.9, suggesting modest overvaluation relative to growth expectations. The company operates within the Oil and Gas - Integrated - International sector, which ranks 152 out of over 250 industries, reflecting weak analyst sentiment. This positioning may limit upside potential despite broader energy market resilience.

Investors must weigh these factors ahead of the upcoming earnings report, a critical event to assess Shell’s ability to stabilize its financial performance. While the stock has underperformed the sector and broader indices in recent months, the modest upward revision in estimates and cautious optimism about operational resilience offer a tempered outlook. For now, a neutral stance aligns with the Zacks Rank, pending clearer signals of operational improvement or sector strength.