Back to top

Image: Bigstock

Enterprise Products Partners (EPD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

In the latest market close, Enterprise Products Partners (EPD - Free Report) reached $29.04, with a -0.38% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%.

Coming into today, shares of the provider of midstream energy services had gained 0.87% in the past month. In that same time, the Oils-Energy sector gained 0.93%, while the S&P 500 gained 3.64%.

The upcoming earnings release of Enterprise Products Partners will be of great interest to investors. In that report, analysts expect Enterprise Products Partners to post earnings of $0.69 per share. This would mark year-over-year growth of 15%. In the meantime, our current consensus estimate forecasts the revenue to be $13.78 billion, indicating a 14.89% growth compared to the corresponding quarter of the prior year.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $2.72 per share and revenue of $56.37 billion. These results would represent year-over-year changes of +7.51% and +13.38%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Enterprise Products Partners. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. Currently, Enterprise Products Partners is carrying a Zacks Rank of #3 (Hold).

Investors should also note Enterprise Products Partners's current valuation metrics, including its Forward P/E ratio of 10.73. For comparison, its industry has an average Forward P/E of 12.45, which means Enterprise Products Partners is trading at a discount to the group.

We can also see that EPD currently has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Production Pipeline - MLB industry had an average PEG ratio of 1.49.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Enterprise Products Partners L.P. (EPD) - free report >>

Published in