In the latest trading session, Shell Oil (RDS.A) closed at $35.30, marking a +1.18% move from the previous day. This change outpaced the S&P 500's 4.41% loss on the day. At the same time, the Dow lost 4.44%, and the tech-heavy Nasdaq lost 4.41%.
Prior to today's trading, shares of the oil and gas company had lost 20.63% over the past month. This has was narrower than the Oils-Energy sector's loss of 30.8% and lagged the S&P 500's loss of 12.16% in that time.
Investors will be hoping for strength from RDS.A as it approaches its next earnings release, which is expected to be April 30, 2020. In that report, analysts expect RDS.A to post earnings of $0.54 per share. This would mark a year-over-year decline of 58.46%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.12 per share and revenue of $248.55 billion, which would represent changes of -72.28% and -29.41%, respectively, from the prior year.
Any recent changes to analyst estimates for RDS.A should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 77.5% lower. RDS.A is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, RDS.A is holding a Forward P/E ratio of 31.22. Its industry sports an average Forward P/E of 21.77, so we one might conclude that RDS.A is trading at a premium comparatively.
It is also worth noting that RDS.A currently has a PEG ratio of 7.81. 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 7.81 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 6% 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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Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
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