On January 12, Zacks Investment Research upgraded energy
pipelines and terminals operator
Sunoco Logistics Partners L.P.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Sunoco Logistics reported strong third quarter 2012 results and
appears set to do well again when it reports fourth quarter
On November 7, 2012, Sunoco Logistics Partners posted solid
third-quarter 2012 profits. The partnership's earnings per unit
("EPU") came in at $1.09, significantly ahead of the Zacks
Consensus Estimate of 85 cents per unit and the year-ago period
profit of 78 cents.
Earnings were primarily aided by higher average crude oil price
and lower interest expense. All of its four segments performed
well. Operating income in the Crude Oil Pipeline System segment
shot up 55.8% from the year-earlier level to $67.0 million,
driven by enhanced mix of pipeline movements along with growth in
organic projects and better tariff rates.
Importantly, the partnership raised its quarterly distribution by
10.0% sequentially and 25.0% year over year to 51.75 cents per
unit or $2.07 per unit annualized. Distributable cash flow
increased 37.0% year over year to $149 million.
Moreover, the partnership delivered positive earnings surprises
in the last four quarters with an average beat of 45.79%. The
long-term expected earnings and sales growth rate for this stock
is 10.20% and 8.11%, respectively.
Other Stocks to Consider
Other energy sector stocks worth a look are
Cabot Oil and Gas Corporation
Atlas Energy L.P
), each carrying a Zacks Rank #1 (Strong Buy).
ATLAS ENERGY LP (ATLS): Free Stock Analysis
CABOT OIL & GAS (COG): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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