On Mar 12, Zacks Investment Research upgraded
Calumet Specialty Products Partners L.P.
) to a Zacks Rank #1 (Strong Buy).
CALUMET SPECLTY (CLMT): Free Stock Analysis
EPL OIL&GAS INC (EPL): Free Stock Analysis
MARATHON PETROL (MPC): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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Why the Upgrade?
Calumet has been witnessing rising earnings estimates owing to
better-than-expected fourth-quarter 2012 results on the back of
increased gross profit in Fuel Products segment. This was aided
by strong sales volume and increased crack spreads. The
partnership declared impressive results on Feb 13, 2013, wherein
earnings of 65 cents per unit surpassed the Zacks Consensus
Estimate of 64 cents by 1.56%.
Indianapolis-based Calumet has outperformed the Zacks Consensus
Estimate for three straight quarters by an average of 46.11%. The
partnership also boasts an impressive long-term expected earnings
growth rate of 25.32%.
Calumet's total sales grew 19.9% to $1,221 million in the quarter
from $1,018 million in the year-ago period and came ahead of the
Zacks Consensus Estimate of $713 million.
Calumet also raised its quarterly common stock distribution to 65
cents per unit ($2.60 per unit annualized). This payout hike
marks an increase of 4.8% over the third quarter of 2012 and a
22.6% increase over the fourth quarter of 2011.
Based on Calumet's consistency in earnings, attractive
fundamentals and a positive outlook, the Zacks Consensus Estimate
for first quarter of 2013 has shot up 329.41% to 73 cents per
unit over the last 30 days. For fiscal 2013, the Zacks Consensus
Estimate advanced 5.76% over the same timeframe to $3.12 per
Other Stocks to Consider
Other stocks worth considering in the energy sector include
EPL Oil & Gas Inc.
Range Resources Corp.
Marathon Petroleum Corporation
). All these firms - sporting a Zacks Rank #1 (Strong Buy) -
offer value and are worth accumulating at current levels.