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Shell Oil (RDS.A) Outpaces Stock Market Gains: What You Should Know

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Shell Oil (RDS.A) closed at $40.89 in the latest trading session, marking a +1.89% move from the prior day. This change outpaced the S&P 500's 0.74% gain on the day.

Coming into today, shares of the oil and gas company had gained 2.69% in the past month. In that same time, the Oils-Energy sector gained 5.23%, while the S&P 500 gained 3.21%.

In that report, analysts expect RDS.A to post earnings of $0.96 per share. This would mark year-over-year growth of 500%.

RDS.A's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $307.09 billion. These results would represent year-over-year changes of +238.71% and +67.63%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 1.88% higher within the past month. RDS.A is currently a Zacks Rank #2 (Buy).

In terms of valuation, RDS.A is currently trading at a Forward P/E ratio of 9.57. Its industry sports an average Forward P/E of 9.74, so we one might conclude that RDS.A is trading at a discount comparatively.

We can also see that RDS.A currently has a PEG ratio of 2.39. 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 0.66 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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