On Mar 5, 2013, we upgraded our recommendation on
Ferrellgas Partners LP
) to Outperform from Neutral. The partnership's earnings
surpassed the Zacks Consensus Estimates on two out of last four
quarters. In the last quarter, the partnership posted positive
earnings surprise of 4.35%. Ferrellgas Partners currently has a
Zacks Rank #3 (Hold).
CALUMET SPECLTY (CLMT): Free Stock Analysis
FERRELLGAS -LP (FGP): Free Stock Analysis
GLOBAL PARTNERS (GLP): Free Stock Analysis
NGL ENERGY PART (NGL): Free Stock Analysis
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Reasons for Upgrade
The revision in recommendation was primarily driven by Ferrellgas
Partners' steady acquisition strategy, decline in operating
costs, strong liquidity positions and steady effort toward debt
Ferrellgas Partners' recent acquisition of IGS Propane will allow
the partnership to provide on-time services with lower
transportation costs given its positional advantage. These
acquisitions are part of the partnership's long-term strategy to
grow as one of the top propane companies.
In addition, Ferrellgas Partners has taken up a restructuring
plan for its balance sheet and aims to lower its debt level with
the issuance of common units. In the last fiscal year, the
partnership issued 1.4 million common units, worth $25.0 million,
to redeem part of its outstanding debts. These initiatives will
ease up the balance sheet and lower the interest burden.
Riding on the strong positives, the Zacks Consensus Estimates for
fiscal-year 2013 earnings per unit currently stands at 59 cents,
reflecting year-over-year growth of 753.3%.
Other Stocks to Consider
Besides Ferrellgas Partners, other stocks in the industry that
are currently performing well include
Calumet Specialty Products Partners LP
Global Partners LP
NGL Energy Partners LP
). All of these presently carry a Zacks Rank #1 (Strong Buy).