Will Enterprise Products Partners L.P. (NYSE:EPD) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 14 March. The shares dropped -0.25 points or -0.88 percent at $28.21 with a light trade volume of 1.983 million shares. After opening the session at $28.39, the shares went as high as $28.48 and as low as $28.17, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $62 billion and now has 2.2 billion shares outstanding. Enterprise Products Partners L.P. (EPD) stock has gained 1.4 percent of market value in 21 trading days.
EPD stock has a trailing 3-year beta of 0.93, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.9 a share in the trailing twelve months. The stock’s value has surged 14.72 percent year to date (YTD) against a rise of 10.12 percent in 12 month’s time. The company’s shares still trade -6.12 percent away from its 1-year high of $30.05 and 24.09 percent up from 52-week low of $22.73. The average consensus rating on the company is 1.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Enterprise Products Partners L.P. (EPD) will probably climb 18.43 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $39-month high price target. This represents a whopping 38.25 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 20.52 percent when compared to the closing price of the stock of $28.21 on Thursday, March 14. The lowest price target for the stock is $30 — slightly more than 6.35 percent from EPD’s current share price.
History has shown that shares in Enterprise Products Partners L.P. have gone up on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of EPD’s Q1 earnings on April 30. Analysts are forecasting revenue to climb 0.8 percent to $9.37B in the fiscal first quarter, while earnings are seen soaring by nearly 14.63 percent to $0.47 per share. It earned $0.59 per share, better than the $0.5, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.18B, worse than the $9.3B analysts expected. Earnings are estimated to increase by 46.9 percent this year, 5.51 percent next year and continue to increase by 8.31 percent annually for the next 5 years.
The stock is currently hovering around the first support level of $28.09. Below this, the next support is placed in the zone of $27.98. Till the time, the EPD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.23 on daily chart, which may remain a cause for concern. If the price breaks below $27.98 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $28.4 mark may result into a pull-back move towards $28.6 level.
Shares of Enterprise Products Partners L.P. (EPD) are trading at a P/E ratio of 23.31 times earnings reported for the past 12 months. The industry EPD operates in has an average P/E of 45.37. Its P/E ratio went as low as 18.48X and as high as 27.18 over the 5-year span.Further, it is sporting a 1.7 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.03. 22.1 percent is the gross profit margin for Enterprise Products Partners L.P. and operating margin sits at 14.9 percent. Along with this, the net profit margin is 11.4 percent.