Shell Oil (RDS.A) closed at $48.85 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%.
Prior to today's trading, shares of the oil and gas company had gained 19.88% over the past month. This has outpaced the Oils-Energy sector's gain of 19.01% and the S&P 500's gain of 4.28% in that time.
RDS.A will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2021. The company is expected to report EPS of $1.37, up 470.83% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.38 per share and revenue of $349.45 billion, which would represent changes of +333.87% and +90.75%, respectively, from the prior year.
It is also important to note the 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.
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. Within the past 30 days, our consensus EPS projection has moved 6.17% higher. RDS.A is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, RDS.A is currently trading at a Forward P/E ratio of 9.19. Its industry sports an average Forward P/E of 8.9, so we one might conclude that RDS.A is trading at a premium comparatively.
Meanwhile, RDS.A's PEG ratio is currently 2.3. 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.64 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 11, which puts it in the top 5% 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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Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
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