Back to top

Image: Bigstock

DCP Midstream Partners, LP (DCP) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, DCP Midstream Partners, LP closed at $42.02, marking a -0.1% move from the previous day. This move lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.

Prior to today's trading, shares of the company had gained 9.16% over the past month. This has outpaced the Oils-Energy sector's gain of 2.39% and the S&P 500's gain of 4.58% in that time.

DCP Midstream Partners, LP will be looking to display strength as it nears 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.

It is also important to note the 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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. DCP Midstream Partners, LP is currently a Zacks Rank #3 (Hold).

Looking at its valuation, DCP Midstream Partners, LP is holding a Forward P/E ratio of 8.51. Its industry sports an average Forward P/E of 16.45, 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 industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

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

Published in