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Plains All American Pipeline (PAA) Gains But Lags Market: What You Should Know

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Plains All American Pipeline (PAA - Free Report) closed at $11.86 in the latest trading session, marking a +0.25% move from the prior day. The stock lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.

Heading into today, shares of the oil and gas transportation and storage company had gained 16.21% over the past month, outpacing the Oils-Energy sector's gain of 15.61% and the S&P 500's gain of 2.94% in that time.

Wall Street will be looking for positivity from Plains All American Pipeline as it approaches its next earnings report date. This is expected to be November 2, 2022. The company is expected to report EPS of $0.28, up 27.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.75 billion, up 36.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.18 per share and revenue of $59.25 billion, which would represent changes of +24.21% and +40.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Plains All American Pipeline. These recent revisions tend to reflect the evolving nature of short-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. 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.

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 7.76% higher. Plains All American Pipeline is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Plains All American Pipeline has a Forward P/E ratio of 10.02 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.81.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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