Sunoco Logistics Partners (SXL) Moving On Heavy Pre-Market Trading
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sunoco Logistics Partners as such a stock due to the following factors:
- SXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.1 million.
- SXL traded 77,800 shares today in the pre-market hours as of 7:32 AM, representing 14.9% of its average daily volume.
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More details on SXL:
Sunoco Logistics Partners L.P. transports, terminals, and stores crude oil, refined products, and natural gas liquids (NGLs). It operates through four segments: Crude Oil Pipelines, Crude Oil Acquisition and Marketing, Terminal Facilities, and Products Pipelines. The stock currently has a dividend yield of 3.8%. SXL has a PE ratio of 83.7. Currently there are 6 analysts that rate Sunoco Logistics Partners a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Sunoco Logistics Partners has been 696,000 shares per day over the past 30 days. Sunoco Logistics has a market cap of $9.8 billion and is part of the basic materials sector and energy industry. Shares are up 0.1% year-to-date as of the close of trading on Monday.
Analysis:
rates Sunoco Logistics Partners as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Despite the weak revenue results, SXL has outperformed against the industry average of 19.8%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- SUNOCO LOGISTICS PARTNERS LP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SUNOCO LOGISTICS PARTNERS LP reported lower earnings of $0.56 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $0.56).
- The gross profit margin for SUNOCO LOGISTICS PARTNERS LP is currently extremely low, coming in at 6.66%. Regardless of SXL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -3.27% trails the industry average.
- In its most recent trading session, SXL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Sunoco Logistics Partners Ratings Report.
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