Trade-Ideas LLC identified

EnLink Midstream Partners

(

ENLK

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified EnLink Midstream Partners as such a stock due to the following factors:

  • ENLK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.4 million.
  • ENLK has traded 698,727 shares today.
  • ENLK is up 4.7% today.
  • ENLK was down 6.2% yesterday.

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More details on ENLK:

Enlink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. The stock currently has a dividend yield of 19%. Currently there are 4 analysts that rate EnLink Midstream Partners a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for EnLink Midstream Partners has been 1.2 million shares per day over the past 30 days. EnLink Midstream has a market cap of $2.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.77 and a short float of 6.8% with 4.07 days to cover. Shares are down 53.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates EnLink Midstream Partners as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1483.7% when compared to the same quarter one year ago, falling from $51.60 million to -$714.00 million.
  • The gross profit margin for ENLINK MIDSTREAM PARTNERS LP is rather low; currently it is at 18.87%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -66.94% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.28%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1133.33% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ENLINK MIDSTREAM 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ENLINK MIDSTREAM PARTNERS LP swung to a loss, reporting -$4.29 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($0.58 versus -$4.29).
  • The revenue growth greatly exceeded the industry average of 32.6%. Since the same quarter one year prior, revenues slightly increased by 7.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

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