Strong And Under The Radar: Buckeye Partners (BPL)

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 strong and under the radar 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 $47.5 million.
  • BPL is making at least a new 3-day high.
  • BPL has a PE ratio of 26.0.
  • BPL is mentioned 0.94 times per day on StockTwits.
  • BPL has not yet been mentioned on StockTwits today.
  • BPL is currently in the upper 20% of its 1-year range.
  • BPL is in the upper 35% of its 20-day range.
  • BPL is in the upper 45% of its 5-day range.
  • BPL 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 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 26.0. Currently there are 3 analysts that rate Buckeye Partners a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Buckeye Partners has been 618,300 shares per day over the past 30 days. Buckeye has a market cap of $10.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.88 and a short float of 1.8% with 3.50 days to cover. Shares are up 12.9% 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 Buckeye Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 46.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BUCKEYE PARTNERS LP has improved earnings per share by 14.1% 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, 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 ($3.30 versus $3.23).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 33.3% when compared to the same quarter one year prior, rising from $77.25 million to $102.94 million.
  • The gross profit margin for BUCKEYE PARTNERS LP is currently extremely low, coming in at 13.73%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.54% 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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