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DCP Midstream Partners, LP (DCP) Gains But Lags Market: What You Should Know

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DCP Midstream Partners, LP closed at $33.22 in the latest trading session, marking a +0.18% move from the prior day. The stock lagged the S&P 500's daily gain of 1.46%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the company had lost 2.98% over the past month. This has lagged the Oils-Energy sector's gain of 2.86% and was narrower than the S&P 500's loss of 6.94% in that time.

Investors will be hoping for strength from DCP Midstream Partners, LP as it approaches its next earnings release. On that day, DCP Midstream Partners, LP is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 1025%. Meanwhile, our latest consensus estimate is calling for revenue of $4.47 billion, up 114.19% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $16.54 billion, which would represent changes of +114.47% and +54.44%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DCP Midstream Partners, LP. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DCP Midstream Partners, LP is currently a Zacks Rank #3 (Hold).

In terms of valuation, DCP Midstream Partners, LP is currently trading at a Forward P/E ratio of 9.74. Its industry sports an average Forward P/E of 14.49, so we one might conclude that DCP Midstream Partners, LP is trading at a discount comparatively.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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