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Enterprise Products Partners Stock Is Trading Range-Bound

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EPD’s stock price

Income investors generally find Enterprise Products Partners (EPD) attractive due to its yield and lower risk. Enterprise Products Partners’ yield forms an important part of its total return profile. We’ll discuss the yield in the next part of this series. Let’s first take a look at Enterprise Products Partners’ price performance in the last five years.

As the above graph shows, Enterprise Products Partners stock has been trading in a range of $24 to $30 for three years now. The stock is finding strong resistance at the $30 level. EPD has been moving sideways for roughly three years now.

As we’ll discuss later in the series, Enterprise Products Partners saw impressive growth in its distributable cash flow in 2018. Still, it didn’t get reflected in the stock’s price.

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EPD in 2019

Enterprise Products Partners has risen ~15% in 2019, around the same level as Energy Transfer (ET). The two stocks have outperformed Magellan Midstream Partners (MMP), which has risen ~5% year-to-date. In comparison, Kinder Morgan (KMI) and Plains All American Pipeline (PAA) have risen ~29% and 21%, respectively, in 2019.

Enterprise Products Partners is trading above both its 50-day and 200-day moving averages. The stock may see some strength in the near term if its 50-day moving average crosses above its 200-day average.

Let’s next take a look at how EPD’s yield has changed over the years.

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