Strong And Under The Radar: EQT Midstream Partners (EQM)

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 EQT Midstream Partners ( EQM) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified EQT Midstream Partners as such a stock due to the following factors:

  • EQM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.0 million.
  • EQM is making at least a new 3-day high.
  • EQM has a PE ratio of 34.9.
  • EQM is mentioned 1.35 times per day on StockTwits.
  • EQM has not yet been mentioned on StockTwits today.
  • EQM is currently in the upper 20% of its 1-year range.
  • EQM is in the upper 35% of its 20-day range.
  • EQM is in the upper 45% of its 5-day range.
  • EQM is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on EQM:

EQT Midstream Partners, LP provides natural gas transmission, storage, and gathering services in southwestern Pennsylvania and northern West Virginia. It owns, operates, acquires, and develops midstream assets in the Appalachian Basin. The stock currently has a dividend yield of 2.2%. EQM has a PE ratio of 34.9. Currently there are 7 analysts that rate EQT Midstream Partners a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for EQT Midstream Partners has been 317,100 shares per day over the past 30 days. EQT Midstream has a market cap of $4.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.59 and a short float of 2.6% with 6.69 days to cover. Shares are up 61.5% year-to-date as of the close of trading on Tuesday.

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 EQT Midstream Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and expanding profit margins. 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 came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 21.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EQT MIDSTREAM PARTNERS LP has improved earnings per share by 37.3% 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 year. We feel that this trend should continue. During the past fiscal year, EQT MIDSTREAM PARTNERS LP increased its bottom line by earning $2.49 versus $2.40 in the prior year. This year, the market expects an improvement in earnings ($3.45 versus $2.49).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 28.1% when compared to the same quarter one year prior, rising from $40.66 million to $52.08 million.
  • Net operating cash flow has significantly increased by 179.90% to $72.96 million when compared to the same quarter last year. In addition, EQT MIDSTREAM PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -5.79%.
  • The gross profit margin for EQT MIDSTREAM PARTNERS LP is currently very high, coming in at 76.52%. Regardless of EQM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EQM's net profit margin of 56.87% significantly outperformed against the industry.

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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