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What’s Ahead for Enterprise Products Partners Stock?

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Aug. 23 2016, Published 11:41 a.m. ET

Year-to-date rise

Enterprise Products Partners (EPD) has risen 7% since the start of 2016. In comparison, Magellan Midstream Partners (MMP), ONEOK (OKE), Enbridge Energy Partners (EEP), and Energy Transfer Partners (ETP) have risen 3%, 101%, 8%, and 21%, respectively, in the same period.

The Alerian MLP ETF (AMLP), an ETF of the top infrastructure MLPs, has risen 5%.

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EPD trades below 50-day moving average

Enterprise Products Partners currently trades 3.7% below its 50-day moving average. But it’s trading 6.8% above its 200-day moving average. A fall below its 200-day moving average may indicate the start of a bearish trend.

After the fall in crude oil prices, EPD has fallen nearly 8% from its 2016 high of $29.90 on July 12, 2016. The above graph shows EPD’s stock price and its 50-day and 200-day moving averages.

EPD stock has shown a high correlation with crude oil prices, especially in the last couple of years. This trend is likely to continue going forward.

In this series

In this series, we’ll take a look at the fundamental strengths of Enterprise Products Partners that helped it do better than its peers in the challenging commodity price environment. We’ll analyze EPD’s price targets, the performance of its various segments, its leverage, its distributable cash flows, its capital expenditures, and its distribution growth.

We’ll also take a look at its valuation compared to its historical valuation and its peers. Finally, we’ll look at the key drivers of EPD stock and the outlook.

Let’s begin by seeing how Enterprise Products Partners’ various business segments are performing.

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