Plains All American Pipeline (PAA) shares ended the last trading session 6.2% higher at $18.73. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's no gain, no loss over the past four weeks.
Plains All American Pipeline’s systematic investments to expand operations, joint ventures, ample liquidity, debt reduction, strong presence in the Permian Basin and non-core asset divestiture will drive its performance.
Recently, the firm announced three bolt-on acquisitions for an aggregate cash consideration of nearly $670 million. These acquisitions are an outstanding strategic fit for the firm and allow it to progress on its efficient growth strategy by adding high-quality assets adjacent to its existing footprint. These transactions should expand PAA's crude oil footprint in the Permian Basin, Eagle Ford and Mid-Con at returns consistent with its additional investment framework.
This oil and gas transportation and storage company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +9.5%. Revenues are expected to be $12.89 billion, up 1.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Plains All American, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PAA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Plains All American is part of the Zacks Oil and Gas - Production Pipeline - MLB industry. Delek Logistics Partners, L.P. (DKL), another stock in the same industry, closed the last trading session 0.7% higher at $42.35. DKL has returned 8.4% in the past month.
For Delek Logistics Partners , the consensus EPU estimate for the upcoming report has remained unchanged over the past month at $0.24. This represents a change of -71.8% from what the company reported a year ago. Delek Logistics Partners currently has a Zacks Rank of #5 (Strong Sell).
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