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Here's Why Enterprise Products Partners (EPD) Fell More Than Broader Market

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Enterprise Products Partners (EPD - Free Report) closed the latest trading day at $33.17, indicating a -1.43% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 1.14%, and the technology-dominated Nasdaq saw a decrease of 0.18%.

The provider of midstream energy services's stock has climbed by 1.6% in the past month, exceeding the Oils-Energy sector's loss of 6.68% and the S&P 500's loss of 7.29%.

Investors will be eagerly watching for the performance of Enterprise Products Partners in its upcoming earnings disclosure. On that day, Enterprise Products Partners is projected to report earnings of $0.69 per share, which would represent year-over-year growth of 4.55%. Our most recent consensus estimate is calling for quarterly revenue of $14.38 billion, down 2.55% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.90 per share and revenue of $59.26 billion. These totals would mark changes of +7.81% and +5.41%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Enterprise Products Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.05% upward. Enterprise Products Partners is currently a Zacks Rank #2 (Buy).

In the context of valuation, Enterprise Products Partners is at present trading with a Forward P/E ratio of 11.62. This expresses a discount compared to the average Forward P/E of 11.84 of its industry.

It's also important to note that EPD currently trades at a PEG ratio of 1.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. EPD's industry had an average PEG ratio of 1.14 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 9, positioning it in the top 4% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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