Midstream Companies’ Moving Averages and Analysts’ Estimates



Moving averages

Large-cap midstream companies are trading 23.4% below their respective 100-day moving averages. Upstream companies are trading 19.4% below their 100-day moving averages. Also, downstream companies trade 23.2% below their 100-day moving averages. Kinder Morgan (KMI) trades 30% below its 100-day moving average. During the last rate hike in December 2015, Kinder Morgan was trading in the price range of $15–$16. Since then, the stock fell continuously. The stock trades around $14.2.

However, the stock is trading close to its 20-day moving average. On February 5, the stock was flat. Currently, the stock trades 65% below its 52-week high since April 2015. On average, midstream companies fell by 3.8% at the close of trade on February 5.

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Spectra Energy Partners (SEP) is trading 6% above its 100-day moving average. This is close to the performance of other midstream companies. The stock struggled to cross its 100-day moving average. Midstream companies are also trading well below their 20-day moving averages except for Kinder Morgan, Spectra Energy Partners, and Plains All American Pipeline (PAA).

Wall Street analysts’ consensus estimates

Wall Street analysts’ consensus estimates suggest an impressive 68.5% upside for these US (SPY) midstream companies. We can compare that to the 38.4% upside consensus estimate for large-cap upstream companies. Over the next 12 months, midstream operators Williams Companies and Energy Transfer Partners (ETP) could see rises of 94% and 61%, respectively, from their current levels as of February 5, 2016. The above graph shows these midstream companies’ moving averages and analysts’ estimates.


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