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Here's Why Enterprise Products Partners (EPD) is a Strong Value Stock

Zacks Equity Research
·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Enterprise Products Partners (EPD)

Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. With its wide base of midstream infrastructure assets, the partnership provides services to producers and consumers of commodities that include natural gas, natural gas liquids (NGL), oil and refined petrochemical products. It was formed in April 1998.

EPD sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Oil and Gas - Production Pipeline - MLB industry's P/E of 12.2X, shares of Enterprise Products Partners are trading at a forward P/E of 10.7X. EPD also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 8X, and a Price/Sales ratio of 1.2X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.10 to $2.73 per share. EPD has an average earnings surprise of 1%.

EPD should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research