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Enterprise Products Partners (EPD) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Enterprise Products Partners (EPD) closed at $26.36, marking a +0.42% move from the previous day. This change lagged the S&P 500's 1.83% gain on the day. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.09%.

Prior to today's trading, shares of the provider of midstream energy services had gained 0.5% over the past month. This has lagged the Oils-Energy sector's gain of 5.29% and outpaced the S&P 500's loss of 5.51% in that time.

Investors will be hoping for strength from Enterprise Products Partners as it approaches its next earnings release. The company is expected to report EPS of $0.63, up 21.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.5 billion, up 24.65% from the year-ago period.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $55.58 billion. These results would represent year-over-year changes of +20% and +36.2%, respectively.

Investors might also notice recent changes to analyst estimates for Enterprise Products Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. Enterprise Products Partners is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Enterprise Products Partners currently has a Forward P/E ratio of 10.41. This represents a discount compared to its industry's average Forward P/E of 11.16.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow EPD in the coming trading sessions, be sure to utilize Zacks.com.


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