In the latest trading session, Shell Oil (RDS.A) closed at $32.41, marking a -1.52% move from the previous day. This change lagged the S&P 500’s 0.84% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 2.51%.
Prior to today’s trading, shares of the oil and gas company had lost 4.05% over the past month. This has lagged the Oils-Energy sector’s loss of 2.76% and the S&P 500’s gain of 3.73% in that time.
Wall Street will be looking for positivity from RDS.A as it approaches its next earnings report date. This is expected to be July 30, 2020. The company is expected to report EPS of -$0.29, down 133.72% from the prior-year quarter.
RDS.A’s full-year Zacks Consensus Estimates are calling for earnings of $0.55 per share and revenue of $252.14 billion. These results would represent year-over-year changes of -86.39% and -28.39%, respectively.
It is also important to note the recent changes to analyst estimates for RDS.A. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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 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. The Zacks Consensus EPS estimate has moved 5.62% higher within the past month. RDS.A currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that RDS.A has a Forward P/E ratio of 59.84 right now. Its industry sports an average Forward P/E of 30.17, so we one might conclude that RDS.A is trading at a premium comparatively.
Meanwhile, RDS.A’s PEG ratio is currently 11.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Oil and Gas – Integrated – International industry currently had an average PEG ratio of 10.46 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 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.