Trade-Ideas: Magellan Midstream Partners L.P (MMP) Is Today's New Lifetime High 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 or Stephanie Link.

Trade-Ideas LLC identified Magellan Midstream Partners L.P ( MMP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Magellan Midstream Partners L.P as such a stock due to the following factors:

  • MMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.6 million.
  • MMP has traded 7,934 shares today.
  • MMP is trading at a new lifetime high.

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More details on MMP:

Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of petroleum products in the United States. The stock currently has a dividend yield of 3.6%. MMP has a PE ratio of 27.1. Currently there are 5 analysts that rate Magellan Midstream Partners L.P a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Magellan Midstream Partners L.P has been 480,700 shares per day over the past 30 days. Magellan Midstream Partners L.P has a market cap of $14.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.50 and a short float of 0.8% with 4.62 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Thursday.

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 Magellan Midstream Partners L.P as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 36.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MAGELLAN MIDSTREAM PRTNRS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MAGELLAN MIDSTREAM PRTNRS LP increased its bottom line by earning $1.93 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.93).
  • 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 148.7% when compared to the same quarter one year prior, rising from $50.52 million to $125.62 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MAGELLAN MIDSTREAM PRTNRS LP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 49.63% is the gross profit margin for MAGELLAN MIDSTREAM PRTNRS LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.30% significantly outperformed against the industry average.

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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