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Enterprise Products Partners (EPD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Enterprise Products Partners (EPD - Free Report) closed at $28.34, marking a -0.56% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the provider of midstream energy services had gained 7.22% over the past month. This has outpaced the Oils-Energy sector's gain of 4.92% and the S&P 500's gain of 3.81% in that time.

Investors will be hoping for strength from EPD as it approaches its next earnings release. The company is expected to report EPS of $0.54, down 8.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.01 billion, down 12.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.13 per share and revenue of $32.64 billion. These totals would mark changes of +11.52% and -10.66%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for EPD. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.37% lower within the past month. EPD is currently a Zacks Rank #3 (Hold).

Digging into valuation, EPD currently has a Forward P/E ratio of 13.36. This valuation marks a premium compared to its industry's average Forward P/E of 11.48.

We can also see that EPD currently has a PEG ratio of 3.34. 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. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 3.05 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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