Back to top

Image: Bigstock

Enterprise Products Partners (EPD) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Enterprise Products Partners (EPD - Free Report) closed at $16.50 in the latest trading session, marking a -1.37% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.39%, and the Nasdaq, a tech-heavy index, added 3.95%.

Prior to today's trading, shares of the provider of midstream energy services had gained 22.74% over the past month. This has outpaced the Oils-Energy sector's gain of 8.8% and the S&P 500's gain of 2.36% in that time.

Investors will be hoping for strength from EPD as it approaches its next earnings release, which is expected to be April 29, 2020. In that report, analysts expect EPD to post earnings of $0.52 per share. This would mark a year-over-year decline of 8.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.47 billion, down 0.82% from the year-ago period.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $32.90 billion. These results would represent year-over-year changes of -4.65% and +0.35%, respectively.

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 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. 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. The Zacks Consensus EPS estimate has moved 5.14% lower within the past month. EPD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, EPD is currently trading at a Forward P/E ratio of 8.16. For comparison, its industry has an average Forward P/E of 5.64, which means EPD is trading at a premium to the group.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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