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Bear Of The Day: Boardwalk Pipeline Partners (BWP)

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Boardwalk Pipeline Partners (BWP) has slipped to a Zacks Rank #5 (Strong Sell) and it is now the Bear of the Day.  Let's take a look at why this stock is sliding lower and how the Zacks Rank might turn around for this pipeline play.

Description

Boardwalk Pipeline Partners LP is a master limited partnership engaged through its subsidiaries, Texas Gas Transmission, LLC and Gulf South Pipeline Company, LP, in the interstate transportation and storage of natural gas.

Recent Earnings

The Zacks Rank looks at quarterly numbers, but more important than that are annual estimate revisions.  That said, let's see what happened recently.

The company reported EPS of $0.33 when the Zacks Consensus Estimate was sitting at $0.40.  That 7 cent miss translates into a negative 17.5% earnings surprise.  That is not what investors want to see.

Revisions

The Zacks Consensus Estimate for 2018 has dropped a little and in this time of estimates moving higher thanks to lower tax rates, this company is among very few with negative revisions.  I see a 5 cent move lower over the last thirty days.

That said, the 2019  Zacks Consensus Estimate has bumped higher by two cents.  That could be just the start of a bigger move higher.  If those estimates continue to move higher, then the Zacks Rank will likely move higher as well.

Chart

Boardwalk Pipeline Partners L.P. Price and Consensus

 

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