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3 Reasons Why Exterran Partners (EXLP) is a Great Momentum Stock

Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.

This method discovered several great candidates for momentum-oriented investors, but today let's focus in on Exterran Partners, L.P.EXLP as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for EXLP's status as a solid momentum stock below:

Fiscal Year EPS Estimate Change for EXLP

In addition to price performance, it is also important to take a look at earnings estimate changes for the full year. This can show if EXLP is poised to make a run based on fundamentals, or if the company is simply moving on speculation.

Over the past week, the full year earnings estimate for EXLP has risen by 5.1%. On its own this is impressive, but consider that it also beats the flat industry average too. The trend is undeniably in Exterran Partners' favor right now, and it suggests that the momentum might be long lasting for this stock.

Quarter EPS Estimate Change for Exterran Partners Stock

While looking at price performance or full year earnings can be essential to understanding a momentum stock, you shouldn't forget about the current quarter EPS and the trend in estimates there. This change can signal how a stock might perform in the next earnings season which is obviously vital for momentum investors.

Right now, EXLP is seeing a nice trend over the past month when it comes to this quarter's earnings estimate projections. In the time frame, EPS estimates for Exterran Partners have gone up by 8.4% compared to an industry average move of -2.1%, suggesting that not only is EXLP heading in the right direction, but it is seeing an increase relative to the industry too.

EXLP Earnings Estimate Revisions Moving in the Right Direction

While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with EXLP as of late too.

Over the past two months, 1 earnings estimate has gone higher compared to no lower for the full year as well as for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago EXLP was expected to post earnings of $1.12 per share for the full year, though today it looks to have EPS of $1.17 for the full year now, representing a solid increase which is something that should definitely be welcomed news to would-be investors.

Bottom Line

Given these factors, investors shouldn't be surprised to note that we have EXLP as a security with a Zacks Rank #1 (Strong Buy) and a Momentum Score of 'A'. So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep EXLP on your short list as this looks be a stock that is very well-positioned to soar in the near term.

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EXTERRAN PTNRS (EXLP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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