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Is NuStar Energy (NS) Worth Adding to Your Portfolio Now?

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On Oct 3, Zacks Investment Research upgraded pipeline operator NuStar Energy, L.P.NS to a Zacks Rank #1 (Strong Buy). The partnership's dominance on fee-based businesses is a real asset in the current volatile commodity pricing environment.

NuStar owns a high-quality, large and diverse asset portfolio. Moreover, in the past few years the partnership has invested heavily on several internal growth projects that are likely to add to its future profitability. The partnership also expects year-over-year earnings growth from its major segment in 2015 amid increased throughput volumes and recent acquisitions.

Also, NuStar has increased its 2015 strategic capital investment projection to $430-$450 million from the prior estimate of $400-$420 million. This should further drive earnings and revenue growth for the firm.

The stability and growth in business has allowed NuStar to consistently pay distributions over the past several years. The partnership also enjoys a stable investment grade rating.

Historically, NuStar has performed well. The partnership surpassed earnings estimates in three of the trailing four quarters with an average surprise of 7.14%. Moreover, the partnership is expected to deliver a year-over-year earnings growth of about 16%, which compares favorably with the industry average of a decline of 10.4%.

Recently, Bradley Barron, CEO and president of NuStar, bought 2,400 units of the partnership. The volume of insider buys for NuStar has seen a rise from 2012 to 2015, suggesting strong confidence in the firm.

Other Stocks to Consider

Other favorably placed stocks from the oil and gas production and pipeline MLP space include TC PipeLines, LP TCP , Spectra Energy Partners, LP SEP and Valero Energy Partners LP VLP . All these stocks hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NUSTAR ENERGY (NS): Free Stock Analysis Report

SPECTRA EGY PTR (SEP): Free Stock Analysis Report

TC PIPELINES (TCP): Free Stock Analysis Report

VALERO EGY PTNR (VLP): Free Stock Analysis Report

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Zacks Investment Research

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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