Plains All American Pipeline (PAA) Laps the Stock Market: Here's Why

Plains All American Pipeline (PAA) closed the latest trading day at $17.17, indicating a +0.59% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.39%.

The oil and gas transportation and storage company's stock has climbed by 5.83% in the past month, exceeding the Oils-Energy sector's gain of 4.48% and the S&P 500's gain of 2.97%.

The upcoming earnings release of Plains All American Pipeline will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.37, reflecting a 9.76% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $13.4 billion, up 8.6% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.24 per share and revenue of $54.01 billion, indicating changes of -12.68% and +10.87%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Plains All American Pipeline. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.59% lower. Right now, Plains All American Pipeline possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Plains All American Pipeline currently has a Forward P/E ratio of 13.77. This denotes a premium relative to the industry's average Forward P/E of 12.58.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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