It's rare when a company with roughly $240 billion annual sales can also be viewed as a growth stock. Oil major Shell is one of those rare animals. Its quarterly earnings growth over the past year ranged from 186% to over $1,000%. Revenue also rose at a steep rate, ranging from 36% to 94%. On Tuesday, the Relative Strength (RS) Rating for Shell stock rose to 81, up from 78 the day before.
It's a notable bump because market research shows that the top-performing stocks tend to have an RS Rating north of 80 as they launch their biggest climbs.
Netherlands-based Shell reported a 186% year-over-year leap in first quarter earnings, to $2.40 per share. Revenue jumped 51% to $84.2 billion. The company says on its website it will release second quarter financial results on July 28, along with a Q2 interim dividend announcement.
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Shell Stock In Top 7%
Among its other key ratings Shell has an 80 EPS Rating. Look for that to rise after its profits surged last year and this year. Its 93 Composite Rating puts it in the top 7% of stocks for a group of the most important technical and fundamental metrics. Even though oil and gas prices have retreated a bit the past couple of weeks, the Oil & Gas group Shell is in still ranks a lofty No. 17 on IBD's list of 197 industry groups.
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One thing to keep an eye on is Shell stock's E Accumulation/Distribution Rating, on an A+ to E scale with A+ tops. That indicates funds are selling more shares than buying. Look for that to improve to a C or better.
Shell Rose Past 3 Sessions
Shell stock has risen for the last three trading sessions, but it needs more work to position itself for a breakout. See if the stock goes on to form a fresh pattern like a three weeks tight or a cup with handle.
Shell stock holds the No. 14 rank among the 22 companies in the Oil & Gas-Integrated industry group. New Fortress Energy and Exxon Mobil are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against that of all other stocks.
