Enterprise Products Partners (EPD) Gains But Lags Market: What You Should Know
Enterprise Products Partners (EPD) closed at $26.26 in the latest trading session, marking a +0.73% move from the prior day. This move lagged the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 1%.
Heading into today, shares of the provider of midstream energy services had lost 1.36% over the past month, outpacing the Oils-Energy sector's loss of 4.55% and lagging the S&P 500's gain of 1.65% in that time.
Investors will be hoping for strength from EPD as it approaches its next earnings release. The company is expected to report EPS of $0.55, down 6.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.01 billion, down 12.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $32.64 billion. These totals would mark changes of +12.04% and -10.66%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for EPD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. EPD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, EPD is currently trading at a Forward P/E ratio of 12.18. This represents a premium compared to its industry's average Forward P/E of 10.77.
We can also see that EPD currently has a PEG ratio of 3.05. 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. EPD's industry had an average PEG ratio of 2.99 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 42, putting it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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