Zacks Research Upgrades Shell (NYSE:SHEL) to “Strong-Buy”

Shell (NYSE:SHEL) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday, Zacks reports.

A number of other research firms have also issued reports on SHEL. Mizuho initiated coverage on shares of Shell in a report on Monday, July 20th. They set a “neutral” rating and a $98.00 target price on the stock. Erste Group Bank raised Shell from a “hold” rating to a “buy” rating in a research report on Thursday, August 27th. HSBC reiterated a “buy” rating on shares of Shell in a report on Friday, September 25th. Wells Fargo & Company boosted their target price on Shell from $100.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Friday, July 31st. Finally, Morgan Stanley set a $101.30 price target on Shell and gave the company an “overweight” rating in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $106.08.

Shell Stock Performance

Shares of Shell stock opened at $96.85 on Tuesday. The stock has a market capitalization of $271.53 billion, a price-to-earnings ratio of 10.69, a price-to-earnings-growth ratio of 0.79 and a beta of 0.10. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.43 and a quick ratio of 1.12. The business has a 50-day moving average of $93.33 and a 200 day moving average of $88.69. Shell has a 12 month low of $68.63 and a 12 month high of $99.15.

Shell (NYSE:SHEL) last issued its quarterly earnings results on Friday, July 31st. The energy company reported $3.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.23 by $0.29. Shell had a net margin of 8.55% and a return on equity of 14.34%. The business had revenue of $94.66 billion for the quarter, compared to analysts’ expectations of $86.22 billion. As a group, sell-side analysts forecast that Shell will post 11.23 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Continuum Advisory LLC acquired a new stake in shares of Shell during the 2nd quarter worth about $34,000. Retirement Wealth Solutions LLC increased its stake in Shell by 57.8% in the third quarter. Retirement Wealth Solutions LLC now owns 478 shares of the energy company’s stock valued at $45,000 after purchasing an additional 175 shares during the last quarter. Nalls Sherbakoff Group LLC acquired a new stake in Shell during the fourth quarter worth approximately $36,000. Kilter Group LLC lifted its position in shares of Shell by 83.1% during the 2nd quarter. Kilter Group LLC now owns 498 shares of the energy company’s stock worth $39,000 after buying an additional 226 shares during the last quarter. Finally, Allied Private Wealth LLC purchased a new position in shares of Shell in the 2nd quarter valued at $43,000. 28.60% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting 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.

Shell Company Profile

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.