Buckeye Partners (BPL) Is Today's Strong And Under The Radar 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.

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 $41.5 million.
  • BPL is making at least a new 3-day high.
  • BPL has a PE ratio of 29.
  • BPL is mentioned 1.55 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 5.8%. BPL has a PE ratio of 29. Currently there are 3 analysts that rate Buckeye Partners a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Buckeye Partners has been 380,000 shares per day over the past 30 days. Buckeye has a market cap of $10.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.04 and a short float of 1.5% with 3.82 days to cover. Shares are up 5.7% 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 compelling growth in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • 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 23.4% when compared to the same quarter one year prior, going from $90.47 million to $111.61 million.
  • BUCKEYE PARTNERS LP's earnings per share improvement from the most recent quarter was slightly positive. 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 reported lower earnings of $2.79 versus $3.23 in the prior year. This year, the market expects an improvement in earnings ($3.59 versus $2.79).
  • BPL, with its decline in revenue, slightly underperformed the industry average of 37.8%. Since the same quarter one year prior, revenues fell by 45.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for BUCKEYE PARTNERS LP is rather low; currently it is at 20.97%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, BPL's net profit margin of 10.25% compares favorably to the industry average.
  • In its most recent trading session, BPL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

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