New Lifetime High Today: Magellan Midstream Partners L.P (MMP)

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 $36.1 million.
  • MMP has traded 9,397 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 25.4. 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 480,300 shares per day over the past 30 days. Magellan Midstream Partners L.P has a market cap of $14.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.51 and a short float of 0.8% with 3.62 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Thursday.

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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, expanding profit margins, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 14.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for MAGELLAN MIDSTREAM PRTNRS LP is rather high; currently it is at 51.13%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 32.90% significantly outperformed against the industry average.
  • MAGELLAN MIDSTREAM PRTNRS LP has improved earnings per share by 22.1% 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 $2.56 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($2.89 versus $2.56).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 23.5% when compared to the same quarter one year prior, going from $153.80 million to $190.01 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.90% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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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