In the latest trading session, Shell Midstream (SHLX) closed at $19.12, marking a -1.85% move from the previous day. This change lagged the S&P 500's 0.45% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.42%.
Coming into today, shares of the master limited partnership had gained 0.88% in the past month. In that same time, the Oils-Energy sector gained 0.31%, while the S&P 500 lost 1.64%.
Wall Street will be looking for positivity from SHLX as it approaches its next earnings report date. This is expected to be February 26, 2019. The company is expected to report EPS of $0.48, up 37.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $130 million, up 2.52% from the prior-year quarter.
Any recent changes to analyst estimates for SHLX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant within the past month. SHLX is currently a Zacks Rank #1 (Strong Buy).
Investors should also note SHLX's current valuation metrics, including its Forward P/E ratio of 10.05. For comparison, its industry has an average Forward P/E of 12.18, which means SHLX is trading at a discount to the group.
Investors should also note that SHLX has a PEG ratio of 3.35 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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