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Enterprise Products Partners (EPD) Falls More Steeply Than Broader Market: What Investors Need to Know

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Enterprise Products Partners (EPD - Free Report) ended the recent trading session at $29.25, demonstrating a -0.88% swing from the preceding day's closing price. This change lagged the S&P 500's 0.19% loss on the day. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.04%.

The provider of midstream energy services's stock has climbed by 1.13% in the past month, exceeding the Oils-Energy sector's loss of 0.03% and lagging the S&P 500's gain of 1.95%.

The investment community will be closely monitoring the performance of Enterprise Products Partners in its forthcoming earnings report. The company is forecasted to report an EPS of $0.69, showcasing a 15% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $13.78 billion, up 14.89% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $56.37 billion. These totals would mark changes of +7.51% and +13.38%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Enterprise Products Partners. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. As of now, Enterprise Products Partners holds a Zacks Rank of #3 (Hold).

Digging into valuation, Enterprise Products Partners currently has a Forward P/E ratio of 10.86. For comparison, its industry has an average Forward P/E of 12.76, which means Enterprise Products Partners is trading at a discount to the group.

It is also worth noting that EPD currently has a PEG ratio of 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Production Pipeline - MLB industry had an average PEG ratio of 1.51 as trading concluded yesterday.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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