In the last trading session, Shell Oil (RDS.A) closed at $ 40.95, a move of +1.39% on the previous day. That change outpaced the S&P 500’s 1.13% gain that day.
Today, the oil and gas company’s shares were up 0.7% over the past month. At the same time, the oil-energy sector lost 5.86% while the S&P 500 gained 2.39%.
RDS.A will look to show strength as it nears its next earnings release, which is expected on July 29, 2021. The company is expected to post an EPS of $ 1.01, an increase of 531.25% over the prior year quarter.
For the full year, our Zacks Consensus Estimates project earnings per share of $ 4.41 and revenue of $ 317.45 billion, a year-over-year change of +255.65% and +73.29%, respectively.
It is also important to note the recent changes in analyst estimates for RDS.A. These revisions help highlight the ever-changing nature of short-term business trends. With this in mind, we can view positive valuation revisions as a sign of optimism about the company’s business outlook.
Based on our research, we believe these valuation revisions are directly related to team-based stock movements. Investors can take advantage of this by using the Zacks rank. This model takes these changes in estimates into account and provides a simple, actionable rating system.
The Zacks ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable track record, externally audited, with the number 1 stocks posting an average annual return of + 25% since 1988. Last month, the Zacks Consensus EPS estimate rose 3.04%. RDS.A currently has a Zacks rank of # 3 (Hold).
Valuation is also important, so investors should note that RDS.A currently has a forward P / E of 9.16. The industry has an average forward P / E of 8.5, so we can conclude that RDS.A is trading at a premium by comparison.
Investors should also note that RDS.A currently has a PEG ratio of 2.29. This popular metric is similar to the widely known P / E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Oil & Gas – Integrated – International stocks hold an average PEG of 0.64 based on yesterday’s closing prices.
The Oil and Gas Industry – Integrated – International Industry is part of the Oil Energy Sector. This industry currently has a Zacks industry ranking of 67, making it the top 27% of all 250+ industries.
The Zacks Industry Rank is a best-to-worst ranking based on the average Zacks rank of each company in each of those sectors. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
Make sure you use zacks. Com to keep track of all of these stock movement metrics and more in the upcoming trading sessions.
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