In the latest trading session, Shell Oil (RDS.A) closed at $50.80, marking a -0.29% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.97%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.
Prior to today's trading, shares of the oil and gas company had gained 18.35% over the past month. This has outpaced the Oils-Energy sector's gain of 14.52% and the S&P 500's loss of 0.78% in that time.
Investors will be hoping for strength from Shell Oil as it approaches its next earnings release, which is expected to be February 3, 2022. On that day, Shell Oil is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 1290%.
Any recent changes to analyst estimates for Shell Oil should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.78% higher. Shell Oil currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Shell Oil currently has a Forward P/E ratio of 7.44. For comparison, its industry has an average Forward P/E of 6.1, which means Shell Oil is trading at a premium to the group.
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. RDS.A's industry had an average PEG ratio of 0.68 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 16, which puts it in the top 7% 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.
To follow RDS.A in the coming trading sessions, be sure to utilize Zacks.com.
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Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
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