Key projects to come online
Enterprise Products Partners (EPD) spent $1 billion on capital projects in 3Q17. In the first nine months of 2017, EPD spent $2.3 billion on capital projects, and the company expects its total 2017 capital expenditures to be in the range of $2.9 billion–$3.1 billion.
EPD recently completed the construction of the pipeline portion of its Midland-to-Sealy crude oil pipeline. The pipeline is expected to start limited service in this month, with full service expected in 2Q18.
Enterprise Products’ PDH (propane dehydrogenation) facility is also expected to start initial production this month. (Learn more about these projects in EPD’s Key Projects That Will Become Operational in 4Q17.)
As the above graph shows, of the analysts surveyed by Reuters, 92% rated Enterprise Products Partners as a “buy,” and 8% rated the company as a “hold.” The median target price for Enterprise Products Partners is $31.5.
Currently, EPD’s shares are trading near $24.55. If Enterprise Products Partners reaches its target price within a year, it would mean 28% upside for investors.
Notably, small-cap MLPs (master limited partnerships) Emerge Energy Services (EMES) and Hi-Crush Partners (HCLP) reported their 3Q17 results recently. You can learn about how they fared in Market Realist’s series Emerge Energy Services Reported Strong 3Q17 Results and Hi-Crush Partners’ Earnings Continued to Rise in 3Q17.
Hanesbrands (HBI) reported a 2.2% YoY (year-over-year) rise in its 3Q17 sales to $1.8 billion. That was in line with analysts' expectations and company guidance.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.