Magellan Midstream Partners (MMP) Gains As Market Dips: What You Should Know
Magellan Midstream Partners (MMP) closed the most recent trading day at $49.45, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily loss of 2.37%. At the same time, the Dow lost 1.35%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the petroleum and oil storage and transportation company had lost 4.73% over the past month, lagging the Oils-Energy sector's gain of 0.87% and outpacing the S&P 500's loss of 6.51% in that time.
Magellan Midstream Partners will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $1.05, down 3.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $728.39 million, up 13.98% from the year-ago period.
MMP's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $2.95 billion. These results would represent year-over-year changes of -12.5% and +6.69%, respectively.
Investors might also notice recent changes to analyst estimates for Magellan Midstream Partners. 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.
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. The Zacks Consensus EPS estimate has moved 6.5% lower within the past month. Magellan Midstream Partners currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Magellan Midstream Partners currently has a Forward P/E ratio of 11.7. Its industry sports an average Forward P/E of 11.06, so we one might conclude that Magellan Midstream Partners is trading at a premium comparatively.
Investors should also note that MMP has a PEG ratio of 3.39 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. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 2.69 based on yesterday's closing prices.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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 MMP in the coming trading sessions, be sure to utilize Zacks.com.
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Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report
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