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Shell Oil (RDS.A) Dips More Than Broader Markets: What You Should Know

·3 min read

Shell Oil (RDS.A) closed at $41.25 in the latest trading session, marking a -1.01% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the oil and gas company had gained 6.08% over the past month. This has outpaced the Oils-Energy sector's gain of 4.86% and the S&P 500's gain of 1.35% in that time.

RDS.A will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.99, up 518.75% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.28 per share and revenue of $309.95 billion, which would represent changes of +245.16% and +69.19%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for RDS.A. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.48% higher. RDS.A is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that RDS.A has a Forward P/E ratio of 9.74 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.57.

Also, we should mention that RDS.A has a PEG ratio of 2.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. RDS.A's industry had an average PEG ratio of 0.71 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 86, putting it in the top 34% 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 RDS.A in the coming trading sessions, be sure to utilize Zacks.com.


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