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Enterprise Products Partners (EPD) Suffers a Larger Drop Than the General Market: Key Insights
ZACKS· 2024-12-26 23:55
The latest trading session saw Enterprise Products Partners (EPD) ending at $31.14, denoting a -1.11% adjustment from its last day's close. This change lagged the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq decreased by 0.05%.Shares of the provider of midstream energy services witnessed a loss of 6.42% over the previous month, beating the performance of the Oils-Energy sector with its loss of 8.03% and underperforming the S&P 500' ...
Stocking Stuffers for Income Investors: 3 Ultra-High-Yield Dividend Stocks to Buy Before the End of 2024
The Motley Fool· 2024-12-23 10:50
Enterprise Products Partners (EPD) - Enterprise Products Partners operates over 50,000 miles of pipelines transporting natural gas liquids, natural gas, crude oil, and petrochemicals across the US [2] - The company owns midstream energy assets including storage facilities holding over 300 million barrels of liquids and 42 natural gas processing trains [2] - Enterprise Products Partners has an A credit rating, reflecting high credit quality and low default risk [3] - The company has consistently generated double-digit percentage returns on invested capital (ROIC) over the last two decades [3] - Enterprise Products Partners offers a forward distribution yield of 6.79% and has increased its distribution for 26 consecutive years [8] - The company is expected to benefit from favorable policies likely to be implemented by the incoming Trump administration [9] - Shares are trading at 10.5 times forward earnings, indicating a relatively cheap valuation [9] Pfizer (PFE) - Pfizer's COVID-19 revenue has significantly declined, and the company faces patent exclusivity losses for multiple blockbuster drugs in the coming years [4] - The company has a strong forward dividend yield of 6.53% and is expected to boost its dividend payout next year [5] - Pfizer is trading at below 8.7 times forward earnings, suggesting an attractive valuation [5] - The company is less dependent on COVID-19 product sales now, with newer products like the respiratory syncytial virus vaccine Abrysvo driving growth [11] - Recent acquisitions, including drugs like Adcetris and Padcev, are generating significant revenue [11] United Parcel Service (UPS) - UPS returned to revenue and profit growth in the third quarter of 2024, moving past the overhang of front-loaded costs associated with its Teamsters Union deal [6] - The company offers an attractive forward dividend yield of 5.19% and has increased its dividend for 15 consecutive years [13] - UPS is the world's largest package delivery company, delivering an average of 22.3 million packages and documents each day [12] - The company is focused on improving profitability by expanding into healthcare logistics and serving small-to-medium-sized businesses [15]
3 Dividend Stocks Up 8%, 16%, and 17% So Far in 2024 to Buy in December
The Motley Fool· 2024-12-22 12:45
Investing in equal parts of these dividend stocks produces an average yield of 4%.2024 is almost over, but there's still time left in the year to identify quality companies that are worth buying now. Some folks may be looking for high-octane growth stocks with room to run, whereas others may be in search of companies that can pay them dividend income no matter what the stock market is doing.Dividend stocks offer a way to participate in the market without all of the gains depending on the stock price going u ...
4 No-Brainer Pipeline Stocks to Buy With $1,000 Right Now
The Motley Fool· 2024-12-19 09:36
Energy consumption has started to rise, in part thanks to the increased use of artificial intelligence (AI) applications. AI training and inference put computer servers through their paces and are very energy-intensive. As AI models advance, the need for computing power and the energy needed to supply it are also increasing. To help fulfill that increased energy consumption, electricity suppliers are turning to natural gas to provide it.One sector that looks set to benefit from this trend is pipeline operat ...
3 Oil & Gas Pipeline Stocks Likely to Thrive Despite Industry Woes
ZACKS· 2024-12-04 15:21
While the midstream energy sector is less affected by oil and gas price swings, the Zacks Oil and Gas - Production & Pipelines industry still faces uncertainties. Conservative capital spending by upstream companies is slowing oil and gas production growth, which could reduce demand for midstream assets.Despite these challenges, pipeline operators are in a stronger position than upstream and downstream firms. They benefit from steady, fee-based revenues through long-term contracts with shippers. Key industry ...
EPD Stock's Valuation Looks Attractive: Is it the Right Time to Buy?
ZACKS· 2024-11-29 20:46
Core Insights - Enterprise Products Partners LP (EPD) is currently considered undervalued, trading at a trailing 12-month EV/EBITDA of 10.71x, below the industry average of 12.43x [2] - The stock carries a Zacks Rank 3 (Hold) at present, indicating a neutral outlook [1][18] Valuation and Financial Performance - EPD's discounted valuation presents a potentially lucrative opportunity, but further analysis is needed to determine if the lower valuation is justified based on fundamentals and market conditions [4] - The partnership has achieved 26 consecutive years of distribution hikes, with a current distribution yield of 6.2%, surpassing the industry average of 5.6% [7] Asset Portfolio and Growth Prospects - EPD boasts a diversified asset portfolio, including over 50,000 miles of pipelines and a storage capacity of 300 million barrels, which supports stable fee-based revenues [5] - The company has a $7 billion development pipeline and is set to generate additional fee-based earnings from $6.9 billion worth of major capital projects currently in service or under construction [6] Strategic Initiatives - Recent strategic acquisitions, such as Piñon Midstream, have enhanced EPD's processing capabilities and strengthened its NGL value chain [10] - Key growth projects, including the Bahia pipeline and Neches River NGL export terminal, are expected to drive significant cash flow growth starting in 2025 [10] Market Performance and Challenges - Year-to-date, EPD's units have gained 37.4%, underperforming the industry's composite stock growth of 46.7% [12] - Delays in key projects, such as the Bahia pipeline, and proposed regulatory changes may pose risks to operations [15] - Elevated growth capital expenditures projected between $3.5 billion and $4 billion in 2025 could strain resources and reduce short-term flexibility for shareholder returns [16]
Growing EPD Business Supports ABT Stock Amid Macroeconomic Issues
ZACKS· 2024-11-29 16:15
Abbott’s (ABT) diversified business portfolio is well-positioned to drive continued momentum in 2024. Yet, the business environment continues to remain challenging globally. The stock carries a Zacks Rank #3 (Hold).Factors Driving ABT SharesWithin Abbott’s Established Pharmaceuticals Division (EPD) business, the company is also strategically progressing with its advancement in biosimilars. Abbott, leveraging on its leading presence in emerging markets, is enjoying a unique opportunity to scale a licensing m ...
Enterprise Products (EPD) Up 15% Since Last Earnings Report: Can It Continue?
ZACKS· 2024-11-28 17:36
A month has gone by since the last earnings report for Enterprise Products Partners (EPD) . Shares have added about 15% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Enterprise Products due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Enterprise Q3 Earnings Lag E ...
3 Midstream Stocks to Buy With $5,000 and Hold Forever
The Motley Fool· 2024-11-26 10:35
If you're an investor looking for high-yield investments with some solid upside potential, there is perhaps no better place to look than the energy midstream space. The stocks in the space tend to have attractive yields, while the sector as a whole trades below historical multiples.The sector has gone through a transformation in the past decade, with midstream companies reducing leverage and being more disciplined when it comes to funding growth projects. By and large, the companies structured as master lim ...
2 No-Brainer High-Yield Dividend Growth Stocks to Buy With $500 Right Now
The Motley Fool· 2024-11-24 10:00
When investors think about high-yield stocks, the yield is often the only issue considered. That's a mistake, because sometimes high yields are a sign of a risky dividend. That's why you should also examine the company backing the yield and, equally important, its commitment to supporting the dividend through good markets and bad ones. Right now, dividend investors should probably be considering reliable income stocks like Enterprise Products Partners (EPD 1.45%) and United Parcel Service (UPS 2.63%). Here' ...