3 Energy Stocks Hit 52-Week Highs: WES, MWE, SRE
NEW YORK (
) -- These energy stocks hit 52-week highs on Tuesday:
Western Gas Partners
(WES) - Get Report
,
MarkWest Energy
(MWE)
and
Sempra Energy
(SRE) - Get Report
.
|
Western Gas Partners
The midstream energy company reported Monday fourth-quarter earnings of $34.4 million, or 35 cents a unit, up from year-ago earnings of $33.6 million, or 48 cents.
"We view WES as a low-risk and reliable growth story," Morgan Stanley analysts wrote in a report on Monday. "While the stock trades at 18.7x 2012e P/CF (vs. peergroup at 14.7x), we believe a premium is warranted for a best-in-class MLP with a visible and sustainable top-tier distribution growth outlook."
Shares of Western Gas Partners hit a 52-week high Tuesday of $46. The stock's 52-week low of $30.75 was set on Aug. 5.
Western Gas Partners has an estimated price-to-earnings ratio for next year of 22.45; the average for exploration and production companies is 42.79. For comparison,
Tesoro
(TSO)
has a lower forward P/E of 7.26;
Sunoco's
(SUN) - Get Report
forward P/E is 24.26.
Ten of the 12 analysts who cover Western Gas Partners rated it a buy; two analysts gave it a hold rating.
TheStreet Ratings
gives Western Gas Partners an A+ grade with a buy rating and a
price target.
MarkWest Energy
The natural gas company is scheduled to report fourth-quarter earnings on Tuesday after the market closes. Analysts, on average, anticipate profit of 49 cents a share on revenue of $403.7 million.
"We are raising our 2012E DCF by another $44mm to $574mm, well above MWE's most recent guidance ($480-$540mm) that was issued with MWE proposed JV buyout of EMG in the Marcellus Shale," Morgan Keegan analysts wrote in a Feb. 3 report.
Shares of MarkWest Energy hit a 52-week high on Tuesday of $60.73. The stock's 52-week low of $39 was set on Aug. 8.
MarkWest Energy has a forward P/E of 21.64; the average for pipeline companies is 70.94. For comparison,
Kinder Morgan Energy
(KMP)
has a higher forward P/E of 34.02.
All nine of the analysts covering MarkWest Energy rated it a buy.
MarkWest Energy gets an A+ grade from
TheStreet Ratings
with a buy rating and a
price target.
Sempra Energy
The energy services company reported Tuesday fourth-quarter earnings of $292 million, or $1.21 a share, up from $280 million, or $1.15 a share, a year earlier.
"In our view, SRE is more likely to do a high single digit div increase over the next several years and grow into an average yield," Bank of America Merrill Lynch analysts wrote in a Feb. 14 report. "Some investors may be expecting another larger than normal dividend increase of around 15% in Feb. 2012, which is possible, but the yield would still be below average (3.8%)."
Shares of Sempra Energy hit a 52-week high on Tuesday of $59. The stock's 52-week low of $44.78 was on Aug. 9.
Sempra Energy has a forward P/E of 12; the average for multi-utility companies is 14.44. For comparison, both
Duke Energy
(DUK) - Get Report
and
Centerpoint Energy
(CNP) - Get Report
have higher forward P/Es of 14.27 and 15.77, respectively.
Eight of the 12 analysts who cover Sempra Energy rated it a hold. Three analysts gave it a buy rating and one rated it sell.
TheStreet Ratings
gives Sempra Energy an A grade with a buy rating and a
price target.
-- Written by Alexandra Zendrian
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