Enterprise Products Partners (EPD) closed at $29 in the latest trading session, marking a +0.22% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the provider of midstream energy services had gained 4.44% over the past month, lagging the Oils-Energy sector's gain of 4.51% and outpacing the S&P 500's gain of 3.88% in that time.
EPD will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2020. The company is expected to report EPS of $0.54, down 8.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.02 billion, down 12.7% from the prior-year quarter.
Any recent changes to analyst estimates for EPD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.73% lower within the past month. EPD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, EPD is currently trading at a Forward P/E ratio of 13.22. This represents a premium compared to its industry's average Forward P/E of 11.15.
Investors should also note that EPD has a PEG ratio of 3.3 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Production Pipeline - MLB industry currently 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 industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.
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