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DCP Midstream Partners, LP (DCP) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, DCP Midstream Partners, LP closed at $38.50, marking a -0.75% move from the previous day. This change lagged the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.

Prior to today's trading, shares of the company had lost 1.22% over the past month. This has was narrower than the Oils-Energy sector's loss of 3.17% and the S&P 500's loss of 5.57% 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 $1.06 per share, which would represent year-over-year growth of 27.71%. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, down 41.69% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for DCP Midstream Partners, LP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DCP Midstream Partners, LP is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, DCP Midstream Partners, LP is currently trading at a Forward P/E ratio of 8.69. Its industry sports an average Forward P/E of 14.38, 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 28, putting it in the top 12% 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.

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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