Inergy Holdings LP.

Company Description

Inergy Holdings LP, through its subsidiaries, operates retail and wholesale propane supply businesses in the United States and Canada. The company was founded in 1996 and has a market cap of $792 million.

Inergy's share price has been on a roll since last November, but recently received an extra boost after the company reported strong second-quarter results on May 6.

Second-Quarter Results

Income was up 16% from last year to $94.7 million, producing distributable earnings of $1.03 per unit, ahead of the consensus of 72 cents.

The nice 43% beat comes on the heels of last quarters 39% beat, a solid 2-quarter run.

Positive Affirmation

Inergy CEO John Sherman noted that the company is on pace to hit its full-year objectives.

Analysts Raise Guidance

Earnings estimates have been on the rise since the solid quarter, with the current-year up 25 cents to $2.07 per share. The next-year stands at $2.57, a 24% earnings growth projection.

Valuations Anyone?

Based upon the current-year estimate, this stock has a P/E multiple of 18X, a premium to the overall market, but keep in mind, it also has a very bullish earnings growth projection in a fairly bearish market.

The Chart

Shares of NRGP have been rallying since last November, climbing from just over $14 to a recent high above $41. Take a look below.

Read the full analyst report on NRGP