Enterprise Products Partners (EPD) Stock Declines While Market Improves: Some Information for Investors

In the latest close session, Enterprise Products Partners (EPD) was down 3.17% at $37.84. This change lagged the S&P 500's 2.91% gain on the day. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.

Coming into today, shares of the provider of midstream energy services had gained 5.94% in the past month. In that same time, the Oils-Energy sector gained 9.79%, while the S&P 500 lost 7.64%.

Investors will be eagerly watching for the performance of Enterprise Products Partners in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.69, marking a 7.81% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $13.18 billion, indicating a 14.5% decline compared to the corresponding quarter of the prior year.

EPD's full-year Zacks Consensus Estimates are calling for earnings of $2.82 per share and revenue of $52.51 billion. These results would represent year-over-year changes of +6.02% and -0.17%, respectively.

Investors might also notice recent changes to analyst estimates 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 business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Currently, Enterprise Products Partners is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Enterprise Products Partners is currently trading at a Forward P/E ratio of 13.88. This represents a premium compared to its industry average Forward P/E of 13.62.

Investors should also note that EPD has a PEG ratio of 1.56 right now. 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 average PEG ratio for the Oil and Gas - Production Pipeline - MLB industry stood at 1.56 at the close of the market yesterday.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 20% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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 EPD in the coming trading sessions, be sure to utilize Zacks.com.

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Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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