New Lifetime High Today: Spectra Energy Partners (SEP)

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 $16.4 million.
  • SEP has traded 1,000 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 4.5%. SEP has a PE ratio of 29.4. Currently there is 1 analyst that rates Spectra Energy Partners a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Spectra Energy Partners has been 189,200 shares per day over the past 30 days. Spectra Energy has a market cap of $5.6 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 4.7% with 5.76 days to cover. Shares are up 8% year-to-date as of the close of trading on Friday.

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 robust revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • SEP's very impressive revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues leaped by 781.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 502.50% and other important driving factors, this stock has surged by 32.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 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 1035.1% when compared to the same quarter one year prior, rising from $48.10 million to $546.00 million.
  • 47.69% is the gross profit margin for SPECTRA ENERGY PARTNERS LP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, SEP's net profit margin of 105.00% significantly outperformed against the industry.
  • SPECTRA ENERGY PARTNERS 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SPECTRA ENERGY PARTNERS LP increased its bottom line by earning $3.75 versus $1.70 in the prior year. For the next year, the market is expecting a contraction of 32.0% in earnings ($2.55 versus $3.75).

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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