Enterprise Products Partners (EPD) Gains As Market Dips: What You Should Know
In the latest trading session, Enterprise Products Partners (EPD) closed at $26.29, marking a +0.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Coming into today, shares of the provider of midstream energy services had gained 0.77% in the past month. In that same time, the Oils-Energy sector lost 5.66%, while the S&P 500 lost 2.56%.
Wall Street will be looking for positivity from EPD as it approaches its next earnings report date. This is expected to be January 30, 2019. In that report, analysts expect EPD to post earnings of $0.49 per share. This would mark year-over-year growth of 32.43%. Our most recent consensus estimate is calling for quarterly revenue of $9.53 billion, up 13.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.80 per share and revenue of $36.64 billion. These totals would mark changes of +36.36% and +25.3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for EPD. 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. EPD currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, EPD is currently trading at a Forward P/E ratio of 14.6. This valuation marks a premium compared to its industry's average Forward P/E of 13.69.
Investors should also note that EPD has a PEG ratio of 4.87 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production Pipeline - MLB was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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