Trade-Ideas LLC identified

Royal Dutch Shell

(

RDS.A

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Dutch Shell as such a stock due to the following factors:

  • RDS.A has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $258.5 million.
  • RDS.A traded 24,192 shares today in the pre-market hours as of 8:45 AM.
  • RDS.A is up 2.1% today from yesterday's close.

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More details on RDS.A:

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. It operates through Upstream and Downstream segments. The company explores for and extracts crude oil, natural gas, and natural gas liquids. The stock currently has a dividend yield of 7.2%. RDS.A has a PE ratio of 19.

The average volume for Royal Dutch Shell has been 6.2 million shares per day over the past 30 days. Royal Dutch Shell has a market cap of $141.5 billion and is part of the basic materials sector and energy industry. Shares are down 3.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Royal Dutch Shell as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 57.8% when compared to the same quarter one year prior, rising from $595.00 million to $939.00 million.
  • ROYAL DUTCH SHELL PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ROYAL DUTCH SHELL PLC reported lower earnings of $0.60 versus $4.70 in the prior year. This year, the market expects an improvement in earnings ($5.50 versus $0.60).
  • RDS.A, with its decline in revenue, slightly underperformed the industry average of 32.6%. Since the same quarter one year prior, revenues fell by 37.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RDS.A's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.23%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, ROYAL DUTCH SHELL PLC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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