Enterprise Products Stock Rises 25% YTD: Should You Buy Now or Avoid it?

Zacks12-20 22:42

Year to date (YTD), Enterprise Products Partners LP EPD has gained 24.6%, trailing the industry’s 33.2% surge. The partnership also underperformed leading midstream energy companies, such as Kinder ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2493264244?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/1ZdURQsxl.vK4YDjconpBw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/dc2d752ba464b69c6cd5fb8c8e0c0e92","is_english":true,"pubTime":"2024-12-20 22:42","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2493264244","market":"us","top_or_hot":-1,"title":"Enterprise Products Stock Rises 25% YTD: Should You Buy Now or Avoid it?","media":"Zacks","content":"<div>\n<p>Year to date (YTD), Enterprise Products Partners LP EPD has gained 24.6%, trailing the industry’s 33.2% surge. The partnership also underperformed leading midstream energy companies, such as Kinder ...</p>\n\n<a href=\"https://finance.yahoo.com/news/enterprise-products-stock-rises-25-144200788.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Enterprise Products Stock Rises 25% YTD: Should You Buy Now or Avoid it?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEnterprise Products Stock Rises 25% YTD: Should You Buy Now or Avoid it?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 22:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/enterprise-products-stock-rises-25-144200788.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Year to date (YTD), Enterprise Products Partners LP EPD has gained 24.6%, trailing the industry’s 33.2% surge. The partnership also underperformed leading midstream energy companies, such as Kinder ...</p>\n\n<a href=\"https://finance.yahoo.com/news/enterprise-products-stock-rises-25-144200788.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0053666078.USD","symbol_name":"摩根大通基金-美国股票A（离岸）美元","start_time":0,"source_url":"https://finance.yahoo.com/news/enterprise-products-stock-rises-25-144200788.html","article_id":"2493264244","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/1ZdURQsxl.vK4YDjconpBw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/dc2d752ba464b69c6cd5fb8c8e0c0e92"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493264244","pubTimestamp":1734705720,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Year to date , Enterprise Products Partners LP EPD has gained 24.6%, trailing the industry’s 33.2% surge. The partnership also underperformed leading midstream energy companies, such as Kinder Morgan Inc. KMI and The Williams Companies Inc. WMB, which recorded growth of 57.4% and 57.7%, respectively, over the same period. Despite these challenges, EPD’s long-term outlook remains promising, supported by a robust pipeline of major projects.Before considering the appropriate investment strategy for the stock, let’s delve into some key fundamentals of this energy leader.EPD's $7B Growth Pipeline and Attractive Yield Potential. Enterprise Products, a top-tier North American midstream service provider, boasts a vast and diversified asset portfolio. This includes more than 50,000 miles of pipelines and a storage capacity of 300 million barrels. Shippers utilize these assets in long-term contracts to transport and store natural gas liquids, crude oil, refined products and petrochemicals. The p","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU0345781412.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","WMB":"威廉姆斯","LU0788109394.HKD":"BGF WORLD ENERGY \"A2\" (HKDHGD) ACC","LU0345780950.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) ACC","BK4588":"碎股","LU1621767737.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (EUR) ACC","LU1150488218.USD":"First Eagle Amundi Income Builder AU2-MD USD","LU2384288077.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A-INS\" (EUR) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","BK4561":"索罗斯持仓","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU1621767810.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A\" (EUR) INC","LU1621768206.USD":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (USD) ACC","LU1621768115.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"B\" (EUR) INC","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","KMI":"金德尔摩根","LU1150488135.SGD":"First Eagle Amundi Income Builder AHS-MD SGD-H","BK4590":"PTP","LU0456854461.SGD":"JPMorgan Funds - Global Natural Resources A (acc) SGD","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","LU0300736062.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) ACC","LU0122376428.USD":"贝莱德世界能源基金A2","EPD":"Enterprise Products Partners L.P","LU0630314457.HKD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (HKD) ACC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","BK4144":"石油与天然气的储存和运输","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","BK4585":"ETF&股票定投概念"},"translate_title":"Enterprise Products股票年初至今上涨25%：您应该立即购买还是避免购买？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WMB":1,"KMI":1,"EPD":0.9},"content_text":"Year to date (YTD), Enterprise Products Partners LP EPD has gained 24.6%, trailing the industry’s 33.2% surge. The partnership also underperformed leading midstream energy companies, such as Kinder Morgan Inc. KMI and The Williams Companies Inc. WMB, which recorded growth of 57.4% and 57.7%, respectively, over the same period. Despite these challenges, EPD’s long-term outlook remains promising, supported by a robust pipeline of major projects.\nYTD Price Chart\n Image Source: Zacks Investment Research\nBefore considering the appropriate investment strategy for the stock, let’s delve into some key fundamentals of this energy leader.\nEPD's $7B Growth Pipeline and Attractive Yield Potential\nEnterprise Products, a top-tier North American midstream service provider, boasts a vast and diversified asset portfolio. This includes more than 50,000 miles of pipelines and a storage capacity of 300 million barrels. Shippers utilize these assets in long-term contracts to transport and store natural gas liquids, crude oil, refined products and petrochemicals. The partnership also has 14 billion cubic feet of natural gas storage capacity, securing stable fee-based revenues. \nAdditionally, EPD is set to generate additional fee-based earnings with $6.9 billion worth of major capital projects currently in service or under construction. These project backlogs will not only secure stable cashflows but will also generate handsome unit-holder returns.\nSupported by its stable and resilient business model, Enterprise Products has achieved 26 consecutive years of distribution hikes. The current distribution yield of the partnership is 6.9%, higher than 6.1% of the composite stocks belonging to the industry.\nDistribution Yield\n Image Source: Zacks Investment Research\nSour Gas to Big Data: EPD's Path to Greater Efficiency\nEPD has acquired Piñon Midstream, strengthening its ability to process natural gas in the Permian – the most prolific basin in the United States. This includes adding special equipment to clean \"sour\" natural gas (gas with impurities like sulfur) and safely handle unwanted byproducts like acid gas. These new facilities will fit into EPD's existing system for handling natural gas liquids (NGLs), making its operations more efficient and comprehensive.\nAlso, the partnership uses advanced technology to make its pipelines run more efficiently and profitably. They analyze massive amounts of data in real-time to predict issues, plan maintenance and optimize operations.\nEPD to Capitalize on Promising Market Opportunities\nData centers and gas-fired power plants are expected to drive demand for natural gas, supported by initiatives like the Texas Energy Fund. Enterprise Products is among the few midstream players with the infrastructure—such as pipelines and storage facilities—to meet this demand efficiently. This makes the partnership uniquely capable of tapping into this growing market???.\nEthylene is a critical component in many industrial applications. U.S. production is highly competitive because it uses ethane (a byproduct of natural gas) as feedstock, which is cheaper than the naphtha used in Europe. Enterprise Products anticipates growing opportunities to export ethylene, especially to Europe, where some smaller and less efficient chemical plants may shut down. This could increase demand for U.S. exports.\nTime to Keep an Eye on EPD?\nDespite advancements, the partnership faces certain uncertainties in its operations. For instance, the Bahia pipeline project experienced minor delays due to permitting issues, pushing timelines into later quarters and potentially affecting near-term revenues.\nAlso, high sustaining capital expenditures, totaling $640 million for 2024, exceeded the partnership’s original estimates due to maintenance needs. Growth capital expenditures also remain elevated, potentially straining cash flow.\nDespite these challenges, which have partly contributed to the partnership's YTD performance lagging the broader industry composite, many analysts remain confident that the midstream energy leader will achieve top-tier margins. Additionally, with EPD appearing undervalued, some investors may see an opportunity to bet on the stock. This is evident from its current valuation of 10.01x trailing 12-month Enterprise Value/EBITDA, which trades at a discount compared to the industry average of 11.70x.\n Image Source: Zacks Investment Research\nHowever, investors may want to exercise caution and wait for the uncertainties to clear before taking a position in the stock, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nNotably, Wall Street’s average price target on EPD suggests a 13.6% increase from its recent closing price of $30.53, with the highest target reaching $39, representing a potential gain of 27.7%. This indicates that current unitholders could see significant short-term benefits.\n Image Source: Zacks Investment Research\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nWilliams Companies, Inc. (The) (WMB) : Free Stock Analysis Report\nEnterprise Products Partners L.P. (EPD) : Free Stock Analysis Report\nKinder Morgan, Inc. (KMI) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493264244"}