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Since I last wrote about the oil and gas company Shell plc (NYSE:SHEL) (OTCPK:RYDAF), its stock has been on a roller coaster ride, coming back to exactly where it was back in March.
This is in
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Shell: Too Speculative Right Now (Rating Downgrade)
Summary
- Shell's price has gone nowhere in the past couple of months owing to a spate of negative developments.
- A weak oil price outlook for 2025 and 2026, a pullback in LNG production, worse than expected sales in Q1 2025, reduction in outlook and high forward P/E work against it.
- The company's continued focus on shareholder distribution still makes a case for the stock in a year when capital gains are unpredictable anyway.
- On the whole though, there's a lot more stacked up negatively for SHEL though, prompting a Hold rating.
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Manika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the theme a step further from LTT with a deeper dive into opportunities presented by the segment.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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