SHEL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Shell PLC (SHEL) is a good buy for a beginner investor with a long-term investment horizon and $50,000-$100,000 available. The stock shows positive technical indicators, strong financial performance in the latest quarter, and favorable analyst ratings. Despite some hedge fund selling and minor negative news, the company's strategic investments in energy projects and its strong valuation support outweigh the risks.
The stock is showing bullish momentum with a positively expanding MACD histogram (0.141), RSI at 68.056 (neutral but nearing overbought), and bullish moving averages (SMA_5 > SMA_20 > SMA_200). The current price of 83.965 is above the pivot level of 82.221, with resistance levels at 84.064 and 85.202, indicating further upside potential.
Shell has signed multiple agreements for offshore natural gas and onshore oil and gas projects in Venezuela, as well as a geological exploration contract in Kazakhstan, showcasing its commitment to expanding its energy portfolio. Analysts have raised price targets recently, citing strong valuation support and global energy demand.
Hedge funds are heavily selling the stock, with a 10019.72% increase in selling over the last quarter. Additionally, Shell's joint venture with Cosan is facing challenges due to disagreements on financing, which could impact future collaboration.
In Q4 2025, Shell demonstrated strong financial performance: Net Income increased by 345.58% YoY to $4.135 billion, EPS rose by 407.14% YoY to 0.71, and Gross Margin improved by 5.86% YoY to 16.25. However, revenue dropped by 3.30% YoY to $64.093 billion.
Analysts are generally positive on Shell. JPMorgan, Citi, and Berenberg recently raised price targets, citing strong valuation support and growth potential. However, RBC Capital downgraded the stock due to concerns over chemical restructuring and portfolio challenges. The overall sentiment remains favorable, with multiple Overweight and Buy ratings.
