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Enterprise Products Partners (EPD) Stock Sinks As Market Gains: What You Should Know

Enterprise Products Partners (EPD) closed at $16 in the latest trading session, marking a -1.9% move from the prior day. This change lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 1.72%.

Coming into today, shares of the provider of midstream energy services had lost 9.79% in the past month. In that same time, the Oils-Energy sector lost 8.87%, while the S&P 500 lost 3.29%.

Wall Street will be looking for positivity from EPD as it approaches its next earnings report date. The company is expected to report EPS of $0.47, down 6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, down 20.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $26.68 billion, which would represent changes of -5.12% and -18.65%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for EPD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. EPD is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, EPD currently has a Forward P/E ratio of 7.99. For comparison, its industry has an average Forward P/E of 7.39, which means EPD is trading at a premium to the group.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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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.

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