Shell (NYSE:SHEL) Stock Bumped Up to "Strong-Buy" by Zacks Research

Key Points

• Zacks Research upgraded Shell to “Strong Buy” from “Hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $106.08.
• Shell opened at $96.85, near its 52-week high of $99.15, with a market capitalization of approximately $271.5 billion and a P/E ratio of 10.69.
• The company exceeded quarterly expectations, reporting adjusted earnings of $3.52 per share versus a $3.23 estimate and revenue of $94.66 billion versus an $86.22 billion forecast.

Shell (NYSE:SHEL - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Tuesday, Zacks reports.

Several other brokerages have also recently commented on SHEL. UBS Group set a $90.00 price target on Shell in a research report on Friday, September 25th. Mizuho began coverage on shares of Shell in a research note on Monday, July 20th. They set a "neutral" rating and a $98.00 target price on the stock. TD Cowen increased their target price on shares of Shell from $107.00 to $115.00 and gave the company a "buy" rating in a research report on Monday, September 28th. HSBC reissued a "buy" rating on shares of Shell in a research note on Friday, September 25th. Finally, Wall Street Zen raised shares of Shell from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $106.08.

Shell Stock Performance

NYSE:SHEL opened at $96.85 on Tuesday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.12 and a current ratio of 1.43. The stock has a market capitalization of $271.53 billion, a PE ratio of 10.69, a P/E/G ratio of 0.79 and a beta of 0.10. Shell has a fifty-two week low of $68.63 and a fifty-two week high of $99.15. The company has a fifty day moving average of $93.33 and a two-hundred day moving average of $88.69.

Shell (NYSE:SHEL - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The energy company reported $3.52 EPS for the quarter, topping the consensus estimate of $3.23 by $0.29. The company had revenue of $94.66 billion during the quarter, compared to analyst estimates of $86.22 billion. Shell had a return on equity of 14.34% and a net margin of 8.55%. As a group, research analysts forecast that Shell will post 11.23 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Shell

A number of hedge funds have recently modified their holdings of SHEL. Engineers Gate Manager LP raised its holdings in shares of Shell by 300.7% in the 2nd quarter. Engineers Gate Manager LP now owns 840,770 shares of the energy company's stock valued at $65,193,000 after purchasing an additional 630,948 shares in the last quarter. Waverly Advisors LLC grew its stake in shares of Shell by 307.1% during the second quarter. Waverly Advisors LLC now owns 407,847 shares of the energy company's stock worth $31,624,000 after purchasing an additional 307,671 shares in the last quarter. Cibc World Market Inc. raised its stake in Shell by 66.3% in the second quarter. Cibc World Market Inc. now owns 586,039 shares of the energy company's stock valued at $45,441,000 after buying an additional 233,634 shares in the last quarter. Van ECK Associates Corp lifted its holdings in Shell by 44.3% during the 2nd quarter. Van ECK Associates Corp now owns 643,152 shares of the energy company's stock worth $49,870,000 after buying an additional 197,551 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its holdings in shares of Shell by 7.9% in the 2nd quarter. Envestnet Asset Management Inc. now owns 2,352,694 shares of the energy company's stock valued at $182,425,000 after acquiring an additional 171,873 shares during the last quarter. Hedge funds and other institutional investors own 28.60% of the company's stock.

Trending Headlines about Shell

Here are the key news stories impacting Shell this week:

• Positive Sentiment: Shell expects its third-quarter indicative refining margin to surge to $42 per barrel, compared with $24 in the second quarter. Middle East-related market disruption and fuel-price volatility have significantly improved refining economics. Shell Signals Another Earnings Beat as Refining Profits Surge
• Positive Sentiment: Shell raised its third-quarter integrated gas production forecast to approximately 740,000–780,000 barrels of oil equivalent per day, up from the previous 570,000–630,000 range. The increase partly reflects production added through its acquisition of ARC Resources. Shell raises Q3 gas output forecast
• Positive Sentiment: The stronger refining outlook and higher gas output have prompted expectations for another earnings beat and a potentially strong quarterly report, scheduled for October 29. Shell flags stronger refining margins as third-quarter gas output rises
• Positive Sentiment: Zacks added SHEL to its Rank #1 (Strong Buy) lists for both overall stocks and income stocks, citing favorable earnings-estimate and value trends. Separate Zacks analysis also characterizes Shell as a growth and momentum stock. New Strong Buy Stocks for October 7th
• Neutral Sentiment: Shell CEO Wael Sawan said the company sees greater competitive potential in Venezuelan natural gas than in heavy oil, while continuing to evaluate opportunities there. Any benefit remains uncertain because of geopolitical and regulatory risks. Shell CEO sees competitive advantage in Venezuela gas versus heavy oil
• Negative Sentiment: Shell’s indicative chemicals margin is expected to decline to $208 per tonne from $270, partially offsetting the refining improvement. Investors may also be taking profits after the stock’s recent advance and near-record valuation levels.

About Shell

Shell plc is a global energy company headquartered in London, United Kingdom. Its operations span the exploration, production, processing, transportation and marketing of oil and natural gas, with an increasing focus on liquefied natural gas (LNG), lower-carbon energy and energy-transition solutions.

The company supplies fuels, lubricants, chemicals and other energy products to businesses, transportation customers and consumers. Shell also operates a network of retail service stations and provides charging services for electric vehicles, renewable power and related energy solutions.

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