Are Enterprise Products Partners L.P. (NYSE:EPD) Shares Headed For A Correction?

Enterprise Products Partners L.P. (NYSE: EPD) was one of the biggest movers in the recent trading session. So what do we make of this stock that is clearly one of the hottest on the market now? The EPD stock is trading at $28.92 from a close of $28.99 on 01/15/20. The day’s price range saw the stock hit a low of $28.92, while the highest price level was $29.22 during the intraday trading.

Is the EPD stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $29.22. Enterprise Products Partners L.P. (NYSE: EPD) has a 52-week price range of between $25.04 and $30.86. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 3660158, compared to its 3-months daily average volume of 5.23 million. In comparison, the average volume for the last 50 days stands at 5,434,602.

What about the stock’s price forecasts? EPD had 27 analysts who offered their 12-month price predictions for the Enterprise Products Partners L.P. shares. The group has given the stock a consensus price target of $34.40, with the lowest forecast being put at $31.00. The highest estimate by the 27 analysts is $37.00. The median price target estimate of $35.00 for the stock represents a 17.37% jump in value from the previous price of $28.92. Looking at the 52-week price ranges, the stock’s current price level is 15.50% from its 52-week high price and -6.30% down from its 52-week low in the same period.

Enterprise Products Partners L.P. shares have surged 0.98% over the past week, but its 1-month performance is in the green at 5.09%. Its performance in the current quarter is up 4.48%, while that figure shoots to -4.05% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 5.66%, with the year-to-date prices up by 2.70%.

The company has a market cap of 63.44 billion and a return on assets (ROA) of 8.10%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with EPD’s at 19.60% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at 10.80%.

But what do Wall Street analysts tracking this stock recommend, given that it has 2.19 billion shares outstanding? 27 analysts polled have a consensus recommendation rating of 4.92, indicating that EPD is a Buy stock at the moment. This mean rating was at 5.00 a month ago. Morgan Stanley called it a Overweight stock on January 06, 2020, while Piper Jaffray rated it a Overweight in its note released on July 17, 2019. Of the 27 analysts, 1 analysts rate the EPD stock as Overweight, while 0 of them rated it as a Hold. 26 analysts rate Enterprise Products Partners L.P. as a Buy, while 0 suggested its Underweight. Only 0 analyst advised investors to sell.

Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Dec 2019) ranged from a low of $0.49 per share to $0.58 per share. The average estimate by the 19 analysts for the EPD shares was $0.54 a share, while the company’s last-quarter results returned an EPS of $0.5. Looking at the current EPS trends, seven days ago, EPD had its Dec 2019 estimates at $0.54 per share while the stock’s EPS was forecasted at the $0.54, a month ago. However, the company’s EPS growth for this quarter stands at -8.50%, while that growth rate for the next fiscal quarter is forecasted at -7.00%. The annual earnings per share growth for the next five years is estimated to be 7.86%, which compares to the 11.37% recorded in the past five-year period.

Let’s briefly check out revenue growth estimates for the company, which is put at -6.70% in the current quarter. However, the next quarter should see net revenue growth of over 1.30%, with analysts forecasting the company’s 12-month growth estimates at 4.00%. 8 analysts have forecast that Enterprise Products Partners L.P. will see its revenue growth net between $7.83 billion and $9.69 billion for the current quarter. The next quarter should see revenue returns of between $8.23 billion and $9.51 billion.The average revenue for the quarter is expected at $8.57 billion, while for the next quarter, it jumps to $8.66 billion. Sales growth for the year are estimated at 4.00%.