World Fuel Services The fuel logistics company is scheduled to report its fourth-quarter results on Thursday. Analysts, on average, anticipate earnings of 69 cents a share on $9.25 billion in revenue. "World Fuel Services benefits from solid volume growth, its ability to enter new markets, gross profit per gallon holding at strong levels, and as it is viewed positively by providers and customers for its ability to provide liquidity to customers under a strong risk managed profile," Bank of America Merrill Lynch analysts wrote in a report Tuesday. "Its 3 segments should post improving volume targets, led by Aviation at 1.07 billion gallons, Land at 717 million gallons, and Marine at 6.6 million metric tons." Shares of World Fuel Services hit a 52-week high of $48.09 on Tuesday. The stock's 52-week low of $29.53 was set on Aug. 9. World Fuel Services has a forward P/E of 15.73; the average for transportation services companies is 15.29. For comparison, Ryder System ( R) has a lower forward P/E of 11.18; Air Lease's ( AL) forward P/E is 18.25. Five of the six analysts who cover World Fuel Services rated it buy; one rated it hold. TheStreet Ratings gives World Fuel Services a B+ grade with a buy rating and $61.95 price target. The stock has increased 13.82% year to date.
Magellan Midstream Partners The petroleum transportation company has extended the open season for shippers' capacity commitments to bring oil from Crane, Tex. to East Houston. "In general, 4Q11 performance benefited from higher transportation and terminal revenues due to a 7% tariff increase on July 1, 2011 which partially offset reduced shipment volumes, higher fees for pipeline capacity, additional pipeline firm capacity lease purchases, recently constructed storage in Cushing, Oklahoma, new refined products tanks at MMP's marine terminals, tank additions at Cushing tank farm and Marrero, Louisiana terminal, and rate increases at Galena Park, Texas terminal," Ladenburg Thalman analysts wrote in a Feb. 8 report. "Overall, the strong performance in these two segments helped MMP generate approximately $131.3 million in distributable cash flow, compared with $128.1 million a year ago and our estimate of $109.7 million." Shares of Magellan Midstream Partners hit a 52-week high Tuesday of $72. The stock's 52-week low of $51 was set on Aug. 8. Magellan Midstream Partners has a forward P/E of 17.33; the average for pipeline companies is 64.53. For comparison, Enterprise Products Partners ( EPD) has a higher forward P/E of 20.55. Ten of the 17 analysts who cover Magellan Midstream Partners rated it hold; seven analysts rated it buy. TheStreet Ratings gives Magellan Midstream Partners an A+ grade with a buy rating and $85.54 price target. The stock has increased 3.85% year to date.