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Shell Oil (RDS.A) Gains As Market Dips: What You Should Know

Shell Oil (RDS.A) closed the most recent trading day at $42.86, moving +0.07% from the previous trading session.

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This story originally appeared on Zacks

Shell Oil (RDS.A) closed the most recent trading day at $42.86, moving +0.07% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.87%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.54%.

- Zacks

Heading into today, shares of the oil and gas company had lost 5.54% over the past month, lagging the Oils-Energy sector's loss of 4.84% and the S&P 500's gain of 0.7% in that time.

Wall Street will be looking for positivity from Shell Oil as it approaches its next earnings report date. In that report, analysts expect Shell Oil to post earnings of $1.58 per share. This would mark year-over-year growth of 1480%.

RDS.A's full-year Zacks Consensus Estimates are calling for earnings of $5.01 per share and revenue of $350.18 billion. These results would represent year-over-year changes of +304.03% and +91.15%, respectively.

It is also important to note the recent changes to analyst estimates for Shell Oil. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Shell Oil is currently a Zacks Rank #3 (Hold).

Investors should also note Shell Oil's current valuation metrics, including its Forward P/E ratio of 8.55. This represents a premium compared to its industry's average Forward P/E of 7.79.

Also, we should mention that RDS.A has a PEG ratio of 2.14. 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 0.69 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 155, which puts it in the bottom 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.



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