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Delek Logistics Partners, L.P. (DKL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Delek Logistics Partners, L.P. (DKL) closed at $33.03 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's 0.84% gain on the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.06%.

Heading into today, shares of the company had gained 4.41% over the past month, outpacing the Oils-Energy sector's gain of 3.63% and the S&P 500's gain of 3.95% in that time.

Investors will be hoping for strength from DKL as it approaches its next earnings release, which is expected to be February 25, 2020. In that report, analysts expect DKL to post earnings of $0.80 per share. This would mark year-over-year growth of 37.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $139.40 million, down 12.49% from the year-ago period.

Investors should also note any recent changes to analyst estimates for DKL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DKL is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DKL has a Forward P/E ratio of 8.43 right now. Its industry sports an average Forward P/E of 11.2, so we one might conclude that DKL is trading at a discount comparatively.

It is also worth noting that DKL currently has a PEG ratio of 4.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DKL's industry had an average PEG ratio of 3.3 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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