Sunoco Logistics Partners (SXL) Showing Signs Of Being Strong And Under The Radar

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

  • SXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.5 million.
  • SXL is making at least a new 3-day high.
  • SXL has a PE ratio of 35.2.
  • SXL is mentioned 1.19 times per day on StockTwits.
  • SXL has not yet been mentioned on StockTwits today.
  • SXL is currently in the upper 20% of its 1-year range.
  • SXL is in the upper 35% of its 20-day range.
  • SXL is in the upper 45% of its 5-day range.
  • SXL 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 SXL:

Sunoco Logistics Partners L.P. is engaged in the transport, terminalling, and storage of crude oil, refined products, and natural gas liquids (NGL) in the United States. The stock currently has a dividend yield of 2.9%. SXL has a PE ratio of 35.2. Currently there is 1 analyst that rates Sunoco Logistics Partners a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Sunoco Logistics Partners has been 364,700 shares per day over the past 30 days. Sunoco Logistics has a market cap of $10.4 billion and is part of the basic materials sector and energy industry. Shares are up 31.5% year-to-date as of the close of trading on Monday.

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 Sunoco Logistics Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 11.8%. 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.
  • Net operating cash flow has slightly increased to $346.00 million or 7.45% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.01%.
  • 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 9.1% when compared to the same quarter one year prior, going from $143.00 million to $156.00 million.
  • Compared to its closing price of one year ago, SXL's share price has jumped by 54.85%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.

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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