Sunoco Logistics Partners LP

Sunoco Logistics Partners LP (SXL - Analyst Report) has been on a very nice rally for the last four months, driven by higher earnings estimates and an improved energy environment.

Company Description

Sunoco Logistics Partners engages in the transportation and storage of refined crude products in the United States. The company was founded in 2001 and has a market cap of $1.52 billion.

Surging Estimates

Shares of SXL have been surging for most of the last four months, largely due to the optimistic disposition of the analyst community. The current-year estimate is up 22 cents in the last 90 days to $4.74 per share. The next-year estimate is up an impressive 72 cents in the same period to $4.93.

Fourth-Quarter Results

The recent bullishness of the analyst community comes on the heels of Sunoco Logistic's fourth-quarter results, reported on Jan 28, that were effected by the slumping economy and temporarily weakened energy market.

Revenue was down 31% to $1.58 billion, but income jumped higher, to $75.3 million, largely due to a recent acquisition. This produced earnings of $1.62 per share, 48 cents ahead of the consensus. Sunoco Logistics has surprised and beat in each of the last four quarters, having done so by an average of 23 cents or 22%.

Valuations

Based upon the current-year estimate, this stock has a forward P/E multiple of just over 11X, a reasonable valuation for a company that is both growing its income and producing consistent results.

The Chart

As previously mentioned, SXL has been trending higher for the last four months after bottoming out with the overall market in late November. Shares are currently pressuring a short-term level of resistance, take a look below.