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Will Enterprise Products Partners Stock Gain Strength?

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Apr. 24 2017, Published 1:06 p.m. ET

EPD’s moving averages

Currently, Enterprise Products Partners (EPD) is trading 2% above its 200-day moving average and 0.5% below its 50-day moving average. Its 50-day moving average level is currently acting as a resistance for the stock. If the stock crosses above its 50-day moving average, it may remain strong in the short term.

As the above graph shows, the company’s 50-day moving average crossed above the 200-day moving average in February 2017, which is considered a bullish sign.

Enterprise Products Partners was trading above its 200-day moving average at the beginning of 2017. The stock temporarily fell below its 200-day moving average in March but has recovered since then.

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Analysts’ recommendations

Of the analysts surveyed by Reuters, ~93% rated Enterprise Products Partners a “buy” and ~7% rated the company a “hold.” None of the analysts surveyed rated it a “sell.” The median target price for Enterprise Products Partners is $33. Currently, its units are trading at ~$27.68. If Enterprise Products Partners attains this target price within a year, it would mean a 19% price return for investors.

As for other midstream companies, 48% of analysts rated Plains All American Pipeline (PAA) a “buy,” and 47% of analysts rated Magellan Midstream Partners (MMP) a “buy.”

In the next part of this series, we’ll take a look at EPD’s forecasted price range for the week based on its implied volatility.

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