NEW YORK (TheStreet) -- Royal Dutch Shell () shares are rallying 2.18% to $46.92 on Tuesday afternoon along with rising oil prices as positive economic data gave U.S. equity markets, including oil futures, a boost.
Crude oil (WTI) is jumping 2.27% to $45.44 per barrel and Brent crude is also rising 2.2% to $48.38 per barrel, according to the CNBC.com index.
U.S. equity markets were helped by positive economic data as consumer confidence for the month of September rose to 103, beating economists' expectations of a reading of 96.1, Reuters reports.
Additionally, U.S. crude stockpiles last week likely decreased 500,000 barrels, according to a preliminary Reuters poll.
Separately, Royal Dutch Shell will sign a contract by the end of October, allowing the company to explore for oil and gas off of Bulgaria's Black Sea coast, Reuters said.
This news comes after the oil and gas company said on Monday that it would abandon its search for oil off of Alaska's northern coast due to disappointing results, the Wall Street Journal added. Shell had spent about $7 billion on its search efforts.
Separately, TheStreet Ratings team rates ROYAL DUTCH SHELL PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate ROYAL DUTCH SHELL PLC (RDS.B) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- RDS.B's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- RDS.B, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 34.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $6,050.00 million or 29.98% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ROYAL DUTCH SHELL PLC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: RDS.B