Enterprise Products Partners (EPD) Outpaces Stock Market Gains: What You Should Know
Enterprise Products Partners (EPD) closed at $17.33 in the latest trading session, marking a +1.88% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.64%. Meanwhile, the Dow gained 0.88%, and the Nasdaq, a tech-heavy index, added 2.56%.
Prior to today's trading, shares of the provider of midstream energy services had lost 0.64% over the past month. This has was narrower than the Oils-Energy sector's loss of 5.43% and lagged the S&P 500's gain of 2.44% in that time.
Wall Street will be looking for positivity from EPD as it approaches its next earnings report date. This is expected to be October 28, 2020. In that report, analysts expect EPD to post earnings of $0.48 per share. This would mark a year-over-year decline of 4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.50 billion, down 18.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.06 per share and revenue of $26.97 billion, which would represent changes of -4.19% and -17.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for EPD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. EPD is currently a Zacks Rank #3 (Hold).
Digging into valuation, EPD currently has a Forward P/E ratio of 8.24. For comparison, its industry has an average Forward P/E of 7.21, which means EPD is trading at a premium to the group.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 15% 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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