Enterprise Products Partners (EPD) Suffers a Larger Drop Than the General Market: Key Insights

The latest trading session saw Enterprise Products Partners (EPD) ending at $31.14, denoting a -1.11% adjustment from its last day’s close. This change lagged the S&P 500’s 0.04% loss on the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq decreased by 0.05%.

Shares of the provider of midstream energy services witnessed a loss of 6.42% over the previous month, beating the performance of the Oils-Energy sector with its loss of 8.03% and underperforming the S&P 500’s gain of 1.05%.

Market participants will be closely following the financial results of Enterprise Products Partners in its upcoming release. It is anticipated that the company will report an EPS of $0.70, marking a 2.78% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $14.43 billion, down 1.29% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.69 per share and revenue of $56.4 billion, which would represent changes of +6.32% and +13.44%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Enterprise Products Partners. These revisions help to show the ever-changing nature 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Enterprise Products Partners is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Enterprise Products Partners is currently trading at a Forward P/E ratio of 11.71. This represents a discount compared to its industry’s average Forward P/E of 13.78.

Meanwhile, EPD’s PEG ratio is currently 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Oil and Gas – Production Pipeline – MLB industry currently had an average PEG ratio of 1.41 as of yesterday’s close.

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