Trade-Ideas: Enterprise Products Partners (EPD) Is Today's Post-Market Leader 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 Enterprise Products Partners ( EPD) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Enterprise Products Partners as such a stock due to the following factors:

  • EPD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $107.0 million.
  • EPD is up 2.3% today from today's close.

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More details on EPD:

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products in the United States and internationally. The stock currently has a dividend yield of 3.9%. EPD has a PE ratio of 25.4. Currently there are 14 analysts that rate Enterprise Products Partners a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Enterprise Products Partners has been 950,000 shares per day over the past 30 days. Enterprise has a market cap of $69.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.81 and a short float of 0.8% with 2.85 days to cover. Shares are up 11.7% 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 Enterprise Products Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 12.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ENTERPRISE PRODS PRTNRS -LP has improved earnings per share by 13.3% 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, ENTERPRISE PRODS PRTNRS -LP increased its bottom line by earning $2.82 versus $2.71 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $2.82).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 15.4% when compared to the same quarter one year prior, going from $552.50 million to $637.70 million.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The gross profit margin for ENTERPRISE PRODS PRTNRS -LP is currently extremely low, coming in at 9.54%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.09% trails that of 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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