Trade-Ideas: Plains All American Pipeline (PAA) Is Today's Post-Market Leader Stock
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.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Plains All American Pipeline as such a stock due to the following factors:
- PAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.0 million.
- PAA is up 2.4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PAA with the Ticky from Trade-Ideas. See the FREE profile for PAA NOW at Trade-Ideas
More details on PAA:
Plains All American Pipeline, L.P., through with its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids (NGL), natural gas, and refined products in the United States and Canada. The stock currently has a dividend yield of 5.8%. PAA has a PE ratio of 19.6. Currently there are 15 analysts that rate Plains All American Pipeline a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Plains All American Pipeline has been 1.7 million shares per day over the past 30 days. Plains All American Pipeline has a market cap of $17.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.54 and a short float of 0.8% with 1.42 days to cover. Shares are down 9.2% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Plains All American Pipeline as a
. Among the primary strengths of the company is its growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 26.2% when compared to the same quarter one year prior, rising from $309.00 million to $390.00 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 19.8%. Since the same quarter one year prior, revenues fell by 11.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- PLAINS ALL AMER PIPELNE -LP has improved earnings per share by 15.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PLAINS ALL AMER PIPELNE -LP reported lower earnings of $2.37 versus $2.80 in the prior year. For the next year, the market is expecting a contraction of 7.2% in earnings ($2.20 versus $2.37).
- The gross profit margin for PLAINS ALL AMER PIPELNE -LP is currently extremely low, coming in at 7.37%. Regardless of PAA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PAA's net profit margin of 4.12% compares favorably to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, PLAINS ALL AMER PIPELNE -LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Plains All American Pipeline Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null