SHEL Should I Buy
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Shell PLC is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock's pre-market decline, neutral technical indicators, and mixed analyst ratings suggest limited immediate upside potential. While the company's financial performance shows strong net income and EPS growth, the recent revenue decline and hedge fund selling activity are concerning. Additionally, there are no strong proprietary trading signals or significant positive catalysts to justify a buy recommendation.
The MACD histogram is negative and contracting (-0.649), indicating bearish momentum. RSI is neutral at 48.533, and moving averages are converging, showing no clear trend. The stock is trading near its support level (S1: 90.261), with resistance at R1: 94.066.
Shell's stock has gained 53.4% over the past year due to strong cash generation and sales growth in its LNG business. Additionally, the company signed a long-term renewable electricity agreement with Evolve Energy Supply.
Hedge funds are selling heavily, with a 10019.72% increase in selling activity over the last quarter. Analysts have issued mixed ratings, including downgrades from BNP Paribas and Rothschild & Co Redburn. The stock is also down 1.33% in pre-market trading.
In 2025/Q4, revenue dropped by 3.30% YoY to $64.093 billion. However, net income surged by 345.47% YoY to $4.134 billion, and EPS increased by 407.14% YoY to 0.71. Gross margin improved to 16.25%, up 5.86% YoY.
Analyst ratings are mixed. BNP Paribas downgraded Shell to Neutral with a $101 price target, while TD Cowen lowered its price target to $110 but maintained a Buy rating. Wells Fargo raised its price target to $94 with an Equal Weight rating, and JPMorgan increased its target to 3,900 GBp with an Overweight rating.
