Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

Shell PLC

Chevron Corporation (CVX) and Shell plc (SHEL) have long stood at the top of the global energy pyramid — both are diversified giants that dominate oil, gas and LNG markets across continents. Each represents a pillar of the “Big Oil” world, with integrated models spanning exploration, refining, marketing and clean-energy transition initiatives. As the oil market normalizes after a volatile few years, both companies are emphasizing capital discipline, free cash flow strength and shareholder returns rather than aggressive production growth.
At the same time, their strategies are starting to diverge. Chevron is doubling down on upstream expansion, particularly in the Permian Basin and Guyana, while Shell is tightening its focus on profitability, cutting exposure to low-return renewable ventures and expanding its already dominant LNG business. Both are solid dividend payers and resilient through cycles — but with different growth levers and valuation profiles.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is better placed now.
The Case for Chevron Stock
Chevron continues to lean on its world-class upstream portfolio as the foundation of its long-term strategy. Its scale in the Permian Basin, coupled with the Hess acquisition, has bolstered its low-cost production base and enhanced exposure to Guyana’s fast-growing offshore fields. Together, these assets provide multi-decade growth visibility, adding premium barrels with high margins. In the second quarter of 2025, Chevron’s production reached 3,396 thousand oil-equivalent barrels per day (MBOE/d), up more than 3% from last year, driven by Permian volumes and new project ramp-ups.
Operational efficiency remains a defining strength. Chevron generated roughly $8.6 billion in operating cash flow and $4.9 billion in free cash flow in the last quarter, supporting continued share repurchases and dividend payments. The company’s $20 billion annual buyback program — among the largest in the sector — underlines management’s confidence in long-term cash generation. Chevron also maintains one of the strongest balance sheets in Big Oil, with a debt-to-total capitalization of just 16.8%.
However, Chevron’s near-term earnings momentum has softened. The company faces headwinds from weaker oil realizations, lower natural gas prices and integration costs tied to its Hess transaction. In refining, margins have compressed from 2023 peaks, tempering overall profitability. While Chevron’s capital efficiency and asset quality remain world-class, its premium valuation and slower EPS growth expectations could limit upside in the near term — especially compared with more diversified peers like Shell.
The Case for Shell Stock
Shell’s turnaround story continues to gather pace. The company’s strategic shift toward operational excellence, cash discipline and focus on returns has begun to pay off meaningfully. In second-quarter 2025, Shell generated $11.9 billion in operating cash flow and $6.5 billion in free cash flow. The results were powered by resilient LNG trading, strong refining margins and disciplined capital management.
Shell’s core strength lies in its world-leading LNG franchise, which accounts for a healthy portion of its earnings. With global LNG demand projected to surge through the late 2020s, this segment gives Shell a durable competitive edge. Its balanced business mix — spanning upstream, chemicals and marketing — cushions volatility and ensures steady cash generation even in softer commodity environments.
Management’s sharper focus on profitability rather than pure volume growth has reshaped Shell’s identity. The company has streamlined its renewable energy portfolio, exiting non-core projects to concentrate on higher-return assets. This pragmatic approach, along with cost reductions and measured capex, is improving return on capital and strengthening balance-sheet flexibility. While regulatory and ESG pressures remain structural challenges, Shell’s diversified operations and growing LNG exposure position it favorably for long-term stability and moderate growth.
Price Performance
Over the past year, Shell shares have climbed more than 12%, while Chevron is up just 3.5%. Shell’s gains reflect the resilience of its integrated model, steady LNG trading profits and better cost control. Chevron’s relative underperformance has been linked to oil price volatility, weaker refining margins and the short-term drag of integrating Hess.
Image Source: Zacks Investment Research
Valuation Comparison
Chevron trades at a forward P/E of 18.7X, notably higher than Shell’s 11.02X. This makes Shell the cheaper of the two on earnings potential and a more attractive play for investors seeking value exposure in Big Oil. Chevron’s higher multiple reflects its premium asset base and strong balance sheet, but the discount at which Shell trades could offer greater upside, especially as its earnings stabilize and its capital discipline continues to impress the market.
Image Source: Zacks Investment Research
EPS Estimate Revisions
Analyst sentiment has also shifted in favor of Shell. Over the past seven days, Shell’s EPS estimates for both 2025 and 2026 have moved up, reflecting optimism around stronger LNG margins and disciplined capital spending.
Image Source: Zacks Investment Research
In contrast, Chevron’s EPS estimates for the same periods have been revised downward, primarily due to weaker oil realizations and refining margins. This divergence suggests that while both companies remain solid cash generators, Shell’s earnings momentum looks stronger heading into 2026.
Image Source: Zacks Investment Research
Both Chevron and Shell carry a Zacks Rank #3 (Hold), signaling balanced near-term risk-reward profiles. Each remains a pillar of the global energy landscape — Chevron with its unmatched upstream quality and financial strength, and Shell with its diversified earnings mix and LNG leadership. Yet at this moment, Shell appears slightly better placed. Its lower valuation, improving earnings trajectory and stronger stock performance highlight an advantage built on flexibility and diversification. Chevron remains a dependable long-term play for stability, but for investors seeking relative value and steady growth in an evolving energy landscape, Shell edges ahead as the more attractively positioned Big Oil stock today.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This is Why Shell Looks Better Positioned Than Chevron Now

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Nasdaq BuyWrite Income ETF (Symbol: FTQI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $22.77 per unit.
With FTQI trading at a recent price near $20.78 per unit, that means that analysts see 9.57% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTQI's underlying holdings with notable upside to their analyst target prices are Genmab A/S (Symbol: GMAB), Talen Energy Corporation (Symbol: TLN), and Shell plc (Symbol: SHEL). Although GMAB has traded at a recent price of $30.13/share, the average analyst target is 23.18% higher at $37.11/share. Similarly, TLN has 18.46% upside from the recent share price of $382.09 if the average analyst target price of $452.62/share is reached, and analysts on average are expecting SHEL to reach a target price of $81.55/share, which is 12.21% above the recent price of $72.67. Below is a twelve month price history chart comparing the stock performance of GMAB, TLN, and SHEL:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
First Trust Nasdaq BuyWrite Income ETF
FTQI
$20.78
$22.77
9.57%
Genmab A/S
GMAB
$30.13
$37.11
23.18%
Talen Energy Corporation
TLN
$382.09
$452.62
18.46%
Shell plc
SHEL
$72.67
$81.55
12.21%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FTQI's Holdings Could Mean 10% Gain Potential

Fintel reports that on October 17, 2025, Wells Fargo initiated coverage of Shell plc - Depositary Receipt (NYSE:SHEL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 20.49% Upside
As of September 30, 2025, the average one-year price target for Shell plc - Depositary Receipt is $87.45/share. The forecasts range from a low of $71.87 to a high of $162.57. The average price target represents an increase of 20.49% from its latest reported closing price of $72.58 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Shell plc - Depositary Receipt is 366,074MM, an increase of 34.58%. The projected annual non-GAAP EPS is 3.93.
What is the Fund Sentiment?
There are 1,680 funds or institutions reporting positions in Shell plc - Depositary Receipt. This is an decrease of 12 owner(s) or 0.71% in the last quarter. Average portfolio weight of all funds dedicated to SHEL is 0.46%, an increase of 5.19%. Total shares owned by institutions decreased in the last three months by 2.90% to 421,016K shares. The put/call ratio of SHEL is 0.55, indicating a bullish outlook.
What are Other Shareholders Doing?
Fisher Asset Management holds 26,393K shares. In its prior filing, the firm reported owning 25,513K shares , representing an increase of 3.33%. The firm decreased its portfolio allocation in SHEL by 8.85% over the last quarter.
Eagle Capital Management holds 12,913K shares. In its prior filing, the firm reported owning 15,671K shares , representing a decrease of 21.36%. The firm decreased its portfolio allocation in SHEL by 28.46% over the last quarter.
FCTDX - Strategic Advisers Fidelity U.S. Total Stock Fund holds 10,555K shares. In its prior filing, the firm reported owning 500K shares , representing an increase of 95.26%. The firm increased its portfolio allocation in SHEL by 3,881.70% over the last quarter.
Bank Of America holds 9,007K shares. In its prior filing, the firm reported owning 8,559K shares , representing an increase of 4.97%. The firm decreased its portfolio allocation in SHEL by 77.22% over the last quarter.
Dfa Investment Trust Co - The Dfa International Value Series holds 8,154K shares. No change in the last quarter.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wells Fargo Initiates Coverage of Shell plc - Depositary Receipt (SHEL) with Equal-Weight Recommendation

Chevron Corporation CVX, a Houston, TX-based integrated oil and gas company, has intervened in a critical regulatory matter concerning Venture Global, Inc. VG LNG’s request for an extension to commission its Plaquemines LNG export facility in Louisiana, according to Reuters. These moves highlight Chevron’s significant commercial stake in the project, tied to a long-term sales and purchase agreement that could face disruption from any delays. The recent filing to federal regulators signals Chevron’s intent to safeguard its interests amid growing uncertainties surrounding Venture Global’s operational timelines.
Venture Global's Extension Request Raises Industry Eyebrows
In September, Venture Global filed a motion with the Federal Energy Regulatory Commission (“FERC”) asking for an extension of its deadline to place the Plaquemines LNG facility into service, moving the target from Sept. 30, 2026, to Dec. 31, 2027. The company cited supply-chain disruptions and construction delays stemming from the COVID-19 pandemic as justification.
Venture Global characterized the extension as a routine procedural request, emphasizing that the change would not alter its publicly announced commercial operation dates for Phase 1 and Phase 2 of the project. However, this reassurance has done little to calm stakeholders, especially following recent arbitration setbacks.
Chevron’s Position Reflects High Stakes for LNG Offtakers
Chevron stated in the FERC filing that it holds a “substantial interest that may be directly affected by the outcome of this proceeding.” While the company has not provided additional public comment, the move to involve itself in regulatory discussions highlights the importance of the Plaquemines LNG project to the broader liquefied natural gas (“LNG”) strategy.
The Plaquemines facility is designed to export up to 27.2 million metric tons of LNG per year once fully operational. Chevron, along with other major energy firms, has committed to purchasing large volumes under long-term contracts. Any delay could complicate Chevron’s global LNG portfolio, disrupt trading strategies and potentially trigger commercial or legal disputes.
Fallout From BP Arbitration Decision Increases Pressure
Chevron’s intervention comes shortly after a major arbitration ruling found that Venture Global breached its obligations to BP plc BP at the Calcasieu Pass LNG facility, also located in Louisiana. That decision determined Venture Global failed to declare commercial operations within the agreed timeframe, thereby violating contractual terms.
The fallout from the BP ruling sent Venture Global’s shares tumbling by 33.4% last week, revealing market skepticism about its ability to meet obligations and deliver on time. Investors are now closely watching other long-term partnerships Venture Global holds, including those with Chevron, Shell plc SHEL and others.
With the precedent set by the BP arbitration, Chevron may be acting preemptively to protect own position, ensuring it is heard as regulators weigh the extension request for Plaquemines.
Plaquemines LNG Project: A Critical Export Hub
Plaquemines LNG is a cornerstone of the next wave of U.S. LNG export capacity. Strategically located along the Mississippi River, the project is seen as vital to expanding U.S. energy dominance in the global gas market. The initial phases aim to deliver 13.5 million metric tons per annum (mtpa), with full capacity expected to reach 27.2 mtpa.
Venture Global has already signed binding agreements for significant volumes from this facility. However, construction progress and scheduling have drawn increased scrutiny amid shifting timelines and concerns over the company’s adherence to commercial start dates.
Chevron’s Intervention Could Influence FERC’s Decision
Chevron’s entrance into the regulatory process may add weight to arguments that the extension request deserves deeper evaluation. The company is not merely a bystander, as a major offtaker, it has direct exposure to project milestones, operational delays and commercial readiness.
This move could open the door for other affected parties to step forward, particularly those with similar purchase agreements. It also raises the question of whether contractual performance at Plaquemines could follow a similar path as the Calcasieu Pass arbitration.
Industry Implications Beyond Venture Global
The broader LNG sector is closely monitoring these developments. Delays and contract disputes can affect global supply chains, influence spot market prices and shape future investment decisions. For offtakers like Chevron, commercial certainty is critical, especially in a volatile energy landscape shaped by geopolitical tensions and shifting demand patterns.
If FERC grants the extension without additional scrutiny or conditions, it could set a concerning precedent for how project developers handle delays and contractual obligations. Conversely, if regulators or stakeholders successfully push for more accountability, it may reshape how future LNG projects are managed and financed.
Conclusion: High Stakes for LNG Markets and Energy Security
Chevron’s proactive stance in the Venture Global extension request illustrates the high stakes involved in U.S. LNG infrastructure development. With billions of dollars tied to long-term contracts and growing global demand for LNG, delays like those at Plaquemines carry implications far beyond construction timelines.
The outcome of this FERC proceeding will not only affect Chevron and Venture Global but could signal a shift in how the U.S. energy sector addresses project timelines, arbitration risks and regulatory oversight. As tensions rise, all eyes remain on Washington and Louisiana, where the next chapter in America’s LNG expansion is being written.
CVX's Zacks Rank
Currently, CVX, VG, SHEL and BP have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Venture Global is a U.S.-based liquefied natural gas ("LNG") company focused on exporting low-cost LNG from the Gulf Coast. It is known for developing projects like Calcasieu Pass and Plaquemines LNG to meet global energy demand. The company is valued at $21.95 billion.
Shell is a global energy company headquartered in the United Kingdom, operating in oil, natural gas and renewable energy sectors. It is one of the world’s largest energy companies, with a strong focus on transitioning to net-zero emissions. The company is valued at $210.7 billion.
BP is a British multinational energy company involved in oil, gas and renewable energy production. The company has committed to becoming a net-zero company by 2050 and is investing heavily in low-carbon technologies. It is valued at $88.75 billion.
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CVX Seeks Regulatory Review on Venture Global's LNG Project Timeline

For Immediate Release
Chicago, IL – October 10, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix, Inc. NFLX, Salesforce, Inc. CRM, Shell plc SHEL, Investors Title Co. ITIC and Smith-Midland Corp. SMID.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Netflix, Salesforce and Shell
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Netflix, Inc., Salesforce, Inc. and Shell plc, as well as two micro-cap stocks Investors Title Co. and Smith-Midland Corp.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opening, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Flat as Q3 Earnings Season Kicks Off
Today's Featured Research Reports
Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+36.6% vs. +31.6%). The company is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention.
NFLX's advertising tier now accounts for more than 55% of new sign-ups in available markets. NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives.
The 2025 content slate with returning hit shows like Squid Game, Wednesday and Stranger Things hold promise. However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind.
(You can read the full research report on Netflix here >>>)
Shares of Salesforce have underperformed the Zacks Computer - Software industry over the year-to-date period (-28.2% vs. +22.1%). The company is facing stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.
Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line.
Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams.
Salesforce's strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. Our estimates suggest that Salesforce's revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2028.
(You can read the full research report on Salesforce here >>>)
Shell's shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+22.2% vs. +9.4%). The company being a London based oil supermajor, looks fairly balanced at the moment. The start-up of LNG Canada and leadership in projects like Whale and Mero-4 strengthen its LNG and upstream portfolio, offering resilience against oil price volatility.
Cost savings of nearly $4 billion since 2022 and a disciplined capital strategy underpin its free cash flow growth target, while consistent $3-3.5 billion quarterly buybacks and a 4% dividend yield enhance shareholder returns.
However, the year over year fall in revenues and earnings in the second quarter of 2025 underscores exposure to commodity cycles. Weak chemicals margins, falling upstream production, and risks of LNG oversupply further weigh on outlook. Additionally, Shell's slower transition toward renewables raises ESG concerns. Hence investors are advised to hold the stock.
(You can read the full research report on Shell here >>>)
Shares of Investors Title have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+24.6% vs. +9.2%). This microcap company with a market capitalization of $492.79 million delivered robust H1 2025 results, with net premiums up 10.1% to $100.8 million and EPS rising 14.9% to $8.16, showcasing strong underwriting and operational efficiency. Non-title revenues climbed 17.2%, driven by like-kind exchange services, now contributing 25% of pre-tax income, enhancing earnings durability.
A steady 46 cents per share quarterly dividend and ongoing buyback capacity highlight consistent shareholder returns. Geographic exposure to growth markets like TX (+15.2%) and FL (+20.7%) supports organic expansion. The firm's debt-free balance sheet with $90M in liquidity and $266 million equity provides strategic flexibility.
However, rising claims reserves (+129.8%), higher agent commissions, and sensitivity to 1031 exchange reforms and interest rate volatility pose risks. Despite these, shares are up 10% YTD and trade at a discount (1.49x EV/sales vs. 2.36x sub-industry).
(You can read the full research report on Investors Title here >>>)
Smith-Midland's shares have gained +2.2% over the past year against the Zacks Building Products - Concrete and Aggregates industry's gain of +20.8%. This microcap company with a market capitalization of $190.49 million and an expanding barrier rental fleet is transforming its revenue model toward high-margin, recurring income, with rental revenue jumping to $14.2 million in the first half of 2025 and driving a 360bps margin gain.
Growth in proprietary Soundwall and SlenderWall systems, alongside rising Easi-Set modular building sales, enhances diversification and captures infrastructure-driven demand. Royalties climbed 53%, reinforcing asset-light, high-margin income. Operating leverage and cost discipline doubled net income to $7.5 million. A $54-million backlog supports visibility amid infrastructure tailwinds.
However, risks include customer concentration, dependence on one-off projects, unresolved internal control weaknesses, elevated working capital, and exposure to input cost inflation. As such, the stock warrants a cautious stance.
(You can read the full research report on Smith-Midland here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Netflix, Salesforce, Shell, Investors Title and Smith-Midland

Thursday, October 9, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Netflix, Inc. (NFLX), Salesforce, Inc. (CRM) and Shell plc (SHEL), as well as two micro-cap stocks Investors Title Co. (ITIC) and Smith-Midland Corp. (SMID). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opening, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Flat as Q3 Earnings Season Kicks Off
Today's Featured Research Reports
Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+36.6% vs. +31.6%). The company is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention.
NFLX's advertising tier now accounts for more than 55% of new sign-ups in available markets. NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives.
The 2025 content slate with returning hit shows like Squid Game, Wednesday and Stranger Things hold promise. However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind.
(You can read the full research report on Netflix here >>>)
Shares of Salesforce have underperformed the Zacks Computer - Software industry over the year-to-date period (-28.2% vs. +22.1%). The company is facing stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.
Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line.
Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams.
Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. Our estimates suggest that Salesforce’s revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2028.
(You can read the full research report on Salesforce here >>>)
Shell’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+22.2% vs. +9.4%). The company being a London based oil supermajor, looks fairly balanced at the moment. The start-up of LNG Canada and leadership in projects like Whale and Mero-4 strengthen its LNG and upstream portfolio, offering resilience against oil price volatility.
Cost savings of nearly $4 billion since 2022 and a disciplined capital strategy underpin its free cash flow growth target, while consistent $3-3.5 billion quarterly buybacks and a 4% dividend yield enhance shareholder returns.
However, the year over year fall in revenues and earnings in the second quarter of 2025 underscores exposure to commodity cycles. Weak chemicals margins, falling upstream production, and risks of LNG oversupply further weigh on outlook. Additionally, Shell’s slower transition toward renewables raises ESG concerns. Hence investors are advised to hold the stock.
(You can read the full research report on Shell here >>>)
Shares of Investors Title have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+24.6% vs. +9.2%). This microcap company with a market capitalization of $492.79 million delivered robust H1 2025 results, with net premiums up 10.1% to $100.8 million and EPS rising 14.9% to $8.16, showcasing strong underwriting and operational efficiency. Non-title revenues climbed 17.2%, driven by like-kind exchange services, now contributing 25% of pre-tax income, enhancing earnings durability.
A steady 46 cents per share quarterly dividend and ongoing buyback capacity highlight consistent shareholder returns. Geographic exposure to growth markets like TX (+15.2%) and FL (+20.7%) supports organic expansion. The firm’s debt-free balance sheet with $90M in liquidity and $266 million equity provides strategic flexibility.
However, rising claims reserves (+129.8%), higher agent commissions, and sensitivity to 1031 exchange reforms and interest rate volatility pose risks. Despite these, shares are up 10% YTD and trade at a discount (1.49x EV/sales vs. 2.36x sub-industry).
(You can read the full research report on Investors Title here >>>)
Smith-Midland’s shares have gained +2.2% over the past year against the Zacks Building Products - Concrete and Aggregates industry’s gain of +20.8%. This microcap company with a market capitalization of $190.49 million and an expanding barrier rental fleet is transforming its revenue model toward high-margin, recurring income, with rental revenue jumping to $14.2 million in the first half of 2025 and driving a 360bps margin gain.
Growth in proprietary Soundwall and SlenderWall systems, alongside rising Easi-Set modular building sales, enhances diversification and captures infrastructure-driven demand. Royalties climbed 53%, reinforcing asset-light, high-margin income. Operating leverage and cost discipline doubled net income to $7.5 million. A $54-million backlog supports visibility amid infrastructure tailwinds.
However, risks include customer concentration, dependence on one-off projects, unresolved internal control weaknesses, elevated working capital, and exposure to input cost inflation. As such, the stock warrants a cautious stance.
(You can read the full research report on Smith-Midland here >>>)
Other noteworthy reports we are featuring today include Waste Management, Inc. (WM), Cummins Inc. (CMI) and Veeva Systems Inc. (VEEV).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Analyst Reports for Netflix, Salesforce & Shell

Oil markets appear to be entering another turning point. OPEC’s recent decision to gradually raise production over the coming quarters has stirred the energy landscape. For Chevron Corporation (CVX), one of the world’s leading integrated oil and gas players, this shift brings both challenges and opportunities. While higher production targets may weigh on oil prices, they also reflect stronger demand expectations — a balancing act that could shape Chevron’s next phase of performance. Investors are now watching closely to see whether CVX stock, which has remained relatively stable this year, can maintain its footing amid evolving supply dynamics.
The immediate question centers on price stability. Brent crude, already trading below $70 per barrel, may experience added downward pressure as more supply enters the market. For companies like Chevron, whose profits are closely linked to commodity prices, this presents a margin risk. Still, the company’s diversified operations and disciplined capital strategy offer meaningful protection. Unlike during the early pandemic period, Chevron is now more efficient and agile, capable of generating solid free cash flow even in a moderate price environment. This improved resilience will be crucial as the market assesses OPEC’s decision and determines whether the increase in supply will outpace recovering demand.
Mixed Quarter for CVX Amid Strong Execution and Soft Pricing
Chevron’s latest quarter illustrated the company’s ability to manage volatility. The company reported adjusted earnings per share of $1.77, topping expectations but trailing the $2.55 recorded a year earlier, largely due to weaker oil realizations. Revenues fell 12% year over year to $44.8 billion, missing consensus estimates. Still, Chevron’s production volumes reached a record 3,396 thousand oil-equivalent barrels per day (MBOE/d), underscoring operational strength even as prices softened.
Upstream production in the United States surged 7.8% year over year to a record 1,695 MBOE/d, led by gains in the Permian Basin — now a core engine of growth. International output slipped slightly, offset by asset sales and maintenance downtime. The company’s downstream performance remained resilient, with profit rising to $737 million from $597 million a year ago, thanks to stronger refined product sales margins. These results show that Chevron’s integrated structure still provides a buffer against commodity price swings, a factor that could become increasingly important as OPEC’s policy changes reshape market sentiment.
CVX’s Strategic Gains from Hess Integration
One of Chevron’s biggest milestones this year was the completion of its Hess acquisition, a move that meaningfully strengthens its long-term production outlook and cash flow generation. The deal brings in premium assets from Guyana’s Stabroek Block, the Bakken, and the Gulf of America, significantly expanding Chevron’s resource portfolio. Management projects the combination will deliver roughly $1 billion in cost synergies by the end of 2025.
That said, the integration phase and arbitration linked to ExxonMobil’s (XOM) preemption rights added a layer of complexity. Although Chevron ultimately secured a favorable outcome, the situation underscores the intense rivalry among global energy leaders such as ExxonMobil and Shell (SHEL) as they compete for low-cost, high-return assets. Looking ahead, Chevron’s broader international footprint — supported by Guyana’s rapidly growing production potential — should help cushion the near-term impacts of weaker oil prices and strengthen its long-term growth outlook.
Chevron’s Financial Discipline Anchors Shareholder Value
Chevron continues to showcase its capital discipline. The company generated $8.6 billion in operating cash flow in the latest quarter and $4.9 billion in free cash flow, even amid subdued oil prices. This robust cash generation allowed the firm to return roughly $6 billion to its shareholders through dividends and buybacks. With the Hess deal expanding its share count, Chevron is accelerating repurchases to offset dilution — targeting over 50% of the newly issued shares to be bought back in the near term.
In comparison, ExxonMobil and Shell also highlighted strong cash generation in recent quarters, though both face similar margin pressures. ExxonMobil’s Q2 earnings of $1.64 per share outperformed expectations but declined from $2.14 a year earlier. Shell, meanwhile, saw quarterly profit slip 28% year over year as refining and LNG margins softened. Across the industry, the trend is clear: earnings are down from 2024 highs, but capital returns remain a priority as producers lean on balance sheet strength and cash discipline to maintain investor confidence.
Price Performance & Yield Comparison
In 2025 so far, Chevron shares are up almost 7%, while ExxonMobil’s performance has been more muted. Meanwhile, Shell stock is up 19.5% year to date.
YTD Price Performance Comparison
Image Source: Zacks Investment Research
On the income front, Chevron boasts a dividend yield of around 4.4%, which outpaces ExxonMobil’s 3.5%. Shell’s yield sits near 3.8%. This premium yield gives Chevron an edge for income-oriented investors, but it also raises the bar: the company must maintain strong cash flows to defend it under margin pressure.
CVX, XOM, SHEL Dividend Yields
Image Source: Zacks Investment Research
Valuation and Outlook: Moderation Ahead
From a valuation standpoint, Chevron trades at a forward price-to-earnings multiple above the industry average and its five-year mean, suggesting that much of its near-term strength is already priced in. With OPEC’s decision potentially keeping oil in the mid-$60s range, further upside may hinge on cost savings and incremental efficiency gains rather than higher commodity prices. Still, the company’s commitment to cost control — including $2-$3 billion in additional savings by 2026 through AI-enabled operational initiatives — could help defend margins even if oil remains range-bound.
Image Source: Zacks Investment Research
Chevron’s outlook for the remainder of 2025 remains stable. Management expects production to edge higher, particularly in the Permian, where the company achieved its milestone of producing more than 1 million barrels of oil equivalent per day right on schedule, a goal set five years ago. While the macro environment remains uncertain, the combination of operational efficiency, a growing low-cost asset base, and continued shareholder distributions positions the company well to weather potential volatility — though not without risk if prices slide further.
What Should Investors Do?
OPEC’s output hike has introduced a new variable into an already complex energy landscape, and Chevron sits right at the center of that shift. The company’s record production levels, expanding asset base, and disciplined capital management offer resilience, but weaker oil prices could temper earnings momentum. For now, the Zacks Rank #3 (Hold) reflects a balanced view amid price uncertainty. In essence, CVX stands as a steady performer rather than a breakout story. The stock’s premium valuation and dependable dividends make it a credible long-term holding, though investors seeking sharper near-term upside may need to wait for clearer signals from both OPEC and global demand trends.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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OPEC's Production Move: Buy, Hold, or Wait on Chevron Stock?

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Sunrun?
The final step today is to look at a stock that meets our ESP qualifications. Sunrun (RUN) earns a #3 (Hold) 20 days from its next quarterly earnings release on November 7, 2024, and its Most Accurate Estimate comes in at -$0.14 a share.
By taking the percentage difference between the -$0.14 Most Accurate Estimate and the -$0.16 Zacks Consensus Estimate, Sunrun has an Earnings ESP of +12.57%. Investors should also know that RUN is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RUN is one of just a large database of Oils and Energy stocks with positive ESPs. Another solid-looking stock is TC Energy (TRP).
Slated to report earnings on November 7, 2024, TC Energy holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.72 a share 20 days from its next quarterly update.
The Zacks Consensus Estimate for TC Energy is $0.69, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +4.57%.
RUN and TRP's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Investors Need to Take Advantage of These 2 Oils and Energy Stocks Now

Shell plc SHEL, a London-based integrated oil and gas company, has released its third-quarter 2025 update, a detailed forecast of its operational and financial expectations for the period. The report, dated Oct. 7, 2025, offers an insight into how one of the world’s largest integrated energy companies is positioning itself across the key business segments. While the numbers are preliminary and subject to change when final results are published on Oct. 30, the company reveals important trends in production, margins and strategic focus areas.
Integrated Gas: Strong LNG Momentum
Shell’s Integrated Gas segment is expected to maintain robust performance in third-quarter 2025. Production is forecasted in the range of 910-950 thousand barrels of oil equivalent per day (kboe/d), slightly up from 913 kboe/d in the second quarter. More notably, LNG liquefaction volumes are projected to rise in the band of 7-7.4 million tons (“MT”), up from 6.7 MT in the previous quarter. This reflects Shell’s continued leverage of its global LNG infrastructure and trading capabilities.
The company also anticipates that Trading & Optimization results will be “significantly higher” than the second quarter, highlighting the segment’s role as a key earnings driver.
Upstream: Production Uptick With Brazil Impact
The Upstream division shows a notable increase in production expectations, 1,790-1,890 kboe/d, up from 1,732 kboe/d in the second quarter. This indicates operational improvements and possibly fewer unplanned outages. However, the segment is not without its challenges. Shell expects adjusted earnings to take a $0.2-$0.4 billion hit due to the rebalancing of participation interests in Brazil’s Tupi field. This reflects the finalization of a redetermination process submitted to Brazil’s National Agency of Petroleum, Natural Gas and Biofuels. Despite this one-off impact, the underlying production growth signals resilience in Shell’s conventional energy portfolio.
Marketing: Volume Dip but Earnings Improvement
Marketing sales volumes are projected to be in the range of 2,650-3,050 kb/d, down from 2,813 kb/d in the second quarter. Still, Shell expects the segment’s adjusted earnings to be higher than the previous quarter. This implies better margins or cost management, even amid slightly lower volumes. Underlying Operational Expenditure (underlying opex) is expected to remain stable, reflecting disciplined operational control.
Chemicals & Products: Refining Strength, Chemicals Weakness
A mixed picture emerges in Chemicals & Products. The indicative refining margin is projected to rise to $11.6/barrel (bbl) from $8.9/bbl in the second quarter, reflecting stronger global demand for refined products. Refinery utilization is also expected to remain high, between 94% and 98%. In contrast, the chemicals margin is forecasted to dip to $160/ton and Shell anticipates an adjusted loss in the Chemicals sub-segment. This divergence highlights the ongoing challenges in the chemicals market, including oversupply and weaker demand, even as refining benefits from tighter market conditions.
Renewables & Energy Solutions: Still in Transition
Renewables and Energy Solutions (“RES”) continues to reflect the transitional nature of Shell’s low-carbon investments. Adjusted earnings are projected between a loss of $0.2 billion and a profit of $0.4 billion, indicating this segment remains volatile and not yet a consistent earnings contributor.
Corporate and Group-Level Highlights
At the group level, Shell expects payable tax to decrease in the band of $2.1-$2.9 billion from $3.4 billion in the second quarter. Working capital movements are projected to be between a loss of $3 billion and a profit of $1 billion, reflecting typical quarter-to-quarter volatility. The company also notes a non-cash impairment of approximately $0.6 billion in the Marketing segment due to the cancellation of the Rotterdam HEFA project, a biofuels initiative, which will be reported as an identified item.
Additionally, Shell expects a 0.4% increase in gearing due to new pension legislation in the Netherlands. This is a non-cash adjustment and will not impact net debt, but it does illustrate how regulatory changes can influence reported metrics.
Conclusion
Shell’s third-quarter 2025 outlook paints a picture of a company in motion, leveraging strength in LNG and refining, managing headwinds in chemicals and Brazil and continuing to navigate the complexities of the energy transition. While near-term uncertainties remain, the update reinforces Shell’s focus on operational discipline and strategic flexibility. Investors and industry watchers will be closely observing the quarterly results on Oct. 30 to see how these projections translate into performance and what they signal for Shell’s path forward in a changing energy world.
SHEL's Zacks Rank & Key Picks
Currently, SHEL has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Canadian Natural Resources Limited CNQ, currently sporting a Zacks Rank #1 (Strong Buy), TechnipFMC plc FTI and Oceaneering International OII, holding a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Natural is one of Canada's largest independent oil and natural gas producers, with operations spanning exploration, development and production across North America, the North Sea and Offshore Africa. The company focuses on a diversified portfolio of assets, including oil sands, conventional crude oil, natural gas and thermal in-situ operations. Canadian Natural is valued at $67.72 billion.
TechnipFMC is a global leader in oil and gas services, specializing in the design, engineering and construction of complex energy infrastructure projects. The company provides a wide range of solutions across the upstream, midstream and downstream sectors, including subsea systems, surface technologies and engineering services. TechnipFMC’s expertise enables energy companies to optimize production, improve efficiency and reduce environmental impact, making it a vital player in the evolving energy landscape. It is valued at $15.62 billion.
Oceaneering International is a global provider of engineered services and products primarily to the offshore oil and gas industry, specializing in remotely operated vehicles, subsea engineering and asset integrity management. The company combines advanced technology and expertise to deliver innovative solutions that enhance safety, efficiency and environmental performance in challenging marine environments. Oceaneering International is valued at $2.44 billion.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Shell Expects Higher Q3 LNG Output and Stronger Gas Trading

Chevron Corporation (CVX) recently finished its major acquisition of Hess, but the financial costs of merging the two massive companies will temporarily hit its short-term results. The U.S. oil giant disclosed that it expects the merger to reduce its third-quarter earnings by anywhere from $200 million to $400 million after taxes. This immediate impact shows that while the long-term benefit of the deal is huge, the upfront expense of integrating operations is significant.
This temporary financial setback comes directly from the complex process of absorbing Hess' business. Roughly half of the cash outflows for immediate costs, such as severance payments related to integrating the workforce, are expected to occur during the third quarter. Even when those one-time charges are excluded, Chevron still anticipates a $50 million to $150 million negative impact on its adjusted earnings.
The company has assured investors that the big financial benefits and operational efficiencies of the Hess deal will start showing up in future quarterly earnings once the complex integration is successfully completed.
Looking specifically at production, Chevron forecasts that the newly acquired Hess assets will contribute a substantial amount: between 450,000 and 500,000 barrels of oil equivalent per day for the quarter, despite some expected operational downtime. Meanwhile, capital spending for the quarter is projected to be between $1 billion and $1.25 billion. Investors will get the full picture when Chevron reports its third-quarter results in early November. The Zacks Consensus Estimate for CVX is $2.13 per share on revenues of $52.1 billion.
Q3 Outlook for ExxonMobil, Shell
ExxonMobil (XOM), Chevron’s larger rival, is expected to announce its third-quarter results in the first week of November. The Zacks Consensus Estimate pegs ExxonMobil’s earnings at $1.73 per share on revenues of $88.6 billion. Notably, earnings estimates for ExxonMobil have been revised upward by two cents over the past month. Still, projections point to a nearly 10% year-over-year drop in earnings and a 1.6% decline in revenues.
Shell (SHEL), the European energy supermajor, is expected to release its third-quarter earnings toward the end of October. The Zacks Consensus Estimate calls for Shell to post earnings of $1.46 per share on revenues of $73.7 billion. Over the past month, Shell’s earnings forecast has been raised by two cents. Still, projections point to a 24% decline in profit from last year, even as revenues are expected to grow 1.7% year over year.
The Zacks Rundown on Chevron
Shares of Chevron have gained nearly 11% so far this year compared with the Oil/Energy sector’s increase of 7.3%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of forward price-to-earnings ratio — Chevron is trading at a premium compared with the industry average. The stock is also trading above its five-year mean of 11.87.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Chevron’s earnings has been revised over the past 60 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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