Spectra Energy Partners (SEP) Hits New Lifetime High - TheStreet

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

Spectra Energy Partners

(

SEP

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Spectra Energy Partners as such a stock due to the following factors:

  • SEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • SEP has traded 3,099 shares today.
  • SEP is trading at a new lifetime high.

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More details on SEP:

Spectra Energy Partners, LP operates as an investment arm of Spectra Energy Corp. The stock currently has a dividend yield of 4%. SEP has a PE ratio of 12.2. Currently there is 1 analyst that rates Spectra Energy Partners a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Spectra Energy Partners has been 226,500 shares per day over the past 30 days. Spectra Energy has a market cap of $16.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.42 and a short float of 1.2% with 2.52 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Spectra Energy Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 12.9%. 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.
  • Compared to its closing price of one year ago, SEP's share price has jumped by 28.88%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SEP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for SPECTRA ENERGY PARTNERS LP is rather high; currently it is at 63.26%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 47.31% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 102.74% to $310.00 million when compared to the same quarter last year. In addition, SPECTRA ENERGY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -2.19%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 53.5% when compared to the same quarter one year prior, rising from $172.00 million to $264.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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