SHEL - 3 Reasons Shell Remains A Buy
2024-05-12 01:04:54 ET
Summary
- Shell's stock price has seen a healthy rise so far this year, and this can continue due to three supporting factors.
- An expected increase in oil prices can boost its earnings. The company's recent results haven't disappointed investors either, with a sequential earnings improvements. And its P/E is still attractive.
- There's a risk from a weakness in the US economy, which can slow down demand. But how big a risk this is remains to be seen.
Since I last wrote about oil producer Shell (SHEL) (RYDAF) in February, its price is up by 17%. The upside to the stock was visible even then despite its weak results for 2023, risks to the macroeconomy and prospects for oil prices. The stock's attributes were the reason for this bullishness. Shell's market multiples were attractive and share buybacks as well as dividend increases added to that....
3 Reasons Shell Remains A Buy