El Paso Pipeline Partners (EPB) Is Today's Pre-Market Mover With Heavy Volume 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 El Paso Pipeline Partners ( EPB) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified El Paso Pipeline Partners as such a stock due to the following factors:

  • EPB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.5 million.
  • EPB traded 99,462 shares today in the pre-market hours as of 7:43 AM, representing 17.8% of its average daily volume.

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More details on EPB:

El Paso Pipeline Partners, L.P. owns and operates interstate natural gas transportation and terminaling facilities in the United States. The stock currently has a dividend yield of 7.7%. EPB has a PE ratio of 19.3. Currently there are no analysts that rate El Paso Pipeline Partners a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for El Paso Pipeline Partners has been 663,200 shares per day over the past 30 days. El Paso Pipeline has a market cap of $7.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.13 and a short float of 1.9% with 2.75 days to cover. Shares are down 7.2% 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 El Paso Pipeline Partners as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • The gross profit margin for EL PASO PIPELINE PARTNERS LP is currently very high, coming in at 76.77%. Regardless of EPB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EPB's net profit margin of 37.11% significantly outperformed against the industry.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.1%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, EPB has underperformed the S&P 500 Index, declining 20.50% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, EL PASO PIPELINE PARTNERS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • EL PASO PIPELINE PARTNERS LP's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, EL PASO PIPELINE PARTNERS LP reported lower earnings of $1.86 versus $2.15 in the prior year. For the next year, the market is expecting a contraction of 10.2% in earnings ($1.67 versus $1.86).

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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