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Hess Midstream Partners LP (HESM) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Hess Midstream Partners (HESM - Free Report) ? Shares have been on the move with the stock up 16.2% over the past month. The stock hit a new 52-week high of $30.71 in the previous session. Hess Midstream Partners has gained 9.4% since the start of the year compared to the 47.8% move for the Zacks Oils-Energy sector and the 95.8% return for the Zacks Energy and Pipeline - Master Limited Partnerships industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 27, 2021, Hess Midstream Partners LP reported EPS of $0.38 versus consensus estimate of $0.37.
For the current fiscal year, Hess Midstream Partners LP is expected to post earnings of $2.37 per share on $1.05 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.52 per share on $1.14 billion in revenues. This represents a year-over-year change of 20.66% and 8.36%, respectively.
Valuation Metrics
Hess Midstream Partners LP may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hess Midstream Partners LP has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.8X current fiscal year EPS estimates. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Hess Midstream Partners LP currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hess Midstream Partners LP passes the test. Thus, it seems as though Hess Midstream Partners LP shares could have potential in the weeks and months to come.
How Does Hess Midstream Partners LP Stack Up to the Competition?
Shares of Hess Midstream Partners LP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including EnQuest (ENQUF - Free Report) , Earthstone Energy , and Riley Exploration Permian (REPX - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Hess Midstream Partners LP, even beyond its own solid fundamental situation.
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Hess Midstream Partners LP (HESM) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Hess Midstream Partners (HESM - Free Report) ? Shares have been on the move with the stock up 16.2% over the past month. The stock hit a new 52-week high of $30.71 in the previous session. Hess Midstream Partners has gained 9.4% since the start of the year compared to the 47.8% move for the Zacks Oils-Energy sector and the 95.8% return for the Zacks Energy and Pipeline - Master Limited Partnerships industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 27, 2021, Hess Midstream Partners LP reported EPS of $0.38 versus consensus estimate of $0.37.
For the current fiscal year, Hess Midstream Partners LP is expected to post earnings of $2.37 per share on $1.05 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.52 per share on $1.14 billion in revenues. This represents a year-over-year change of 20.66% and 8.36%, respectively.
Valuation Metrics
Hess Midstream Partners LP may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hess Midstream Partners LP has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.8X current fiscal year EPS estimates. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Hess Midstream Partners LP currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hess Midstream Partners LP passes the test. Thus, it seems as though Hess Midstream Partners LP shares could have potential in the weeks and months to come.
How Does Hess Midstream Partners LP Stack Up to the Competition?
Shares of Hess Midstream Partners LP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including EnQuest (ENQUF - Free Report) , Earthstone Energy , and Riley Exploration Permian (REPX - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Hess Midstream Partners LP, even beyond its own solid fundamental situation.