In the latest trading session, Magellan Midstream Partners (MMP) closed at $50.66, marking a -0.61% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the petroleum and oil storage and transportation company had lost 1.07% over the past month. This has was narrower than the Oils-Energy sector's loss of 1.89% and the S&P 500's loss of 7.59% in that time.
Investors will be hoping for strength from Magellan Midstream Partners as it approaches its next earnings release. The company is expected to report EPS of $1.02, down 6.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $728.39 million, up 13.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.35 per share and revenue of $2.95 billion. These totals would mark changes of -9.38% and +6.69%, respectively, from last year.
Any recent changes to analyst estimates for Magellan Midstream Partners should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 6.1% lower. Magellan Midstream Partners is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Magellan Midstream Partners has a Forward P/E ratio of 11.72 right now. This represents a premium compared to its industry's average Forward P/E of 11.31.
Investors should also note that MMP has a PEG ratio of 3.4 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 2.79 as of yesterday's close.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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 MMP in the coming trading sessions, be sure to utilize Zacks.com.
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