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

Shell Oil (RDS.A) closed the most recent trading day at $37.91, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily gain of 1.45%. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.78%.

Prior to today's trading, shares of the oil and gas company had gained 10.38% over the past month. This has outpaced the Oils-Energy sector's loss of 17.88% and the S&P 500's loss of 7.42% 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 April 30, 2020. On that day, RDS.A is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 58.46%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $248.55 billion. These totals would mark changes of -72.28% and -29.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for RDS.A. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 74.09% lower within the past month. RDS.A currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, RDS.A is holding a Forward P/E ratio of 34.07. This valuation marks a premium compared to its industry's average Forward P/E of 23.85.

It is also worth noting that RDS.A currently has a PEG ratio of 8.52. 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. RDS.A's industry had an average PEG ratio of 4.49 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 230, which puts it in the bottom 10% 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.

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


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