Buckeye Partners (BPL): Heavy Pre-Market Activity

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 Buckeye Partners ( BPL) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Buckeye Partners as such a stock due to the following factors:

  • BPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.6 million.
  • BPL traded 38,660 shares today in the pre-market hours as of 7:40 AM, representing 10.5% of its average daily volume.

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More details on BPL:

Buckeye Partners, L.P. owns and operates liquid petroleum products pipeline systems in the United States. The company operates through four segments: Pipelines & Terminals, Global Marine Terminals, Merchant Services, and Development & Logistics. The stock currently has a dividend yield of 5.6%. BPL has a PE ratio of 27.1. Currently there are 4 analysts that rate Buckeye Partners a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Buckeye Partners has been 370,600 shares per day over the past 30 days. Buckeye has a market cap of $9.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.76 and a short float of 1.9% with 5.77 days to cover. Shares are up 11.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Buckeye Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • BPL's very impressive revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues leaped by 82.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BUCKEYE PARTNERS LP's earnings per share declined by 33.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BUCKEYE PARTNERS LP increased its bottom line by earning $3.23 versus $2.31 in the prior year. This year, the market expects an improvement in earnings ($3.40 versus $3.23).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BUCKEYE PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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 BUCKEYE PARTNERS LP is currently extremely low, coming in at 9.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.27% trails that of the industry average.

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