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Enterprise Products Partners (EPD) Dips More Than Broader Markets: What You Should Know

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Enterprise Products Partners (EPD) closed at $23.88 in the latest trading session, marking a -1.49% move from the prior day. This move lagged the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the provider of midstream energy services had lost 7.83% over the past month. This has was narrower than the Oils-Energy sector's loss of 8.9% and lagged the S&P 500's loss of 6.96% in that time.

Wall Street will be looking for positivity from EPD as it approaches its next earnings report date. This is expected to be January 30, 2019. In that report, analysts expect EPD to post earnings of $0.49 per share. This would mark year-over-year growth of 32.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.46 billion, up 12.23% from the year-ago period.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $36.59 billion. These results would represent year-over-year changes of +36.36% and +25.14%, respectively.

Any recent changes to analyst estimates for EPD should also be noted by investors. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. EPD is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, EPD is holding a Forward P/E ratio of 13.5. Its industry sports an average Forward P/E of 11.63, so we one might conclude that EPD is trading at a premium comparatively.

We can also see that EPD currently has a PEG ratio of 4.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 1.64 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EPD in the coming trading sessions, be sure to utilize Zacks.com.

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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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