SHEL Should I Buy
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Shell PLC (SHEL) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock shows a bullish technical setup, positive financial performance, and promising long-term growth prospects, despite some short-term headwinds.
The technical indicators for SHEL are bullish. The MACD is positive and contracting, RSI is neutral at 61.752, and moving averages are aligned in a bullish pattern (SMA_5 > SMA_20 > SMA_200). The stock is trading above its pivot point (79.716) with resistance levels at 81.759 and 83.022, indicating potential for further upward movement.
Shell is optimizing its portfolio by selling a stake in the North West Shelf gas export plant, which could improve operational efficiency. The LNG supply agreement with Metlen and the Raízen joint venture in Brazil highlight Shell's commitment to long-term growth in key markets. Additionally, the company's strong financial performance in Q4 2025, with significant net income and EPS growth, supports its investment appeal.
Hedge funds are selling the stock, with a significant increase in selling activity (10019.72% over the last quarter). Analysts have expressed concerns about Shell's chemicals restructuring and exposure to challenging market dynamics in international gas and trading. The arbitration against a $5 billion fine in Kazakhstan could also pose risks.
In Q4 2025, Shell's revenue dropped by 3.30% YoY to $64.09 billion. However, net income increased by 345.58% YoY to $4.14 billion, EPS surged by 407.14% YoY to 0.71, and gross margin improved by 5.86% YoY to 16.25%. These figures indicate strong profitability and operational efficiency despite a slight revenue decline.
Analysts have mixed views on Shell. Recent upgrades include JPMorgan and Berenberg raising price targets to 3,400 GBp and 3,300 GBp, respectively, with Overweight and Buy ratings. However, RBC downgraded the stock to Sector Perform, citing challenges in chemicals restructuring and market dynamics. Piper Sandler and Wells Fargo also lowered price targets, reflecting concerns about balance sheet expansion and resource depth. Overall, the stock has a mix of positive and cautious sentiment from analysts.
