Sunoco Logistics Partners LP
(SXL - Analyst Report
) has held up quite well in the weak market, recently hitting a new 52-week high as investors flock to dividend stocks. With a Q2 earnings surprise of 83% and estimates on the rise, this Zacks #1 Rank stock has momentum in a weak market.
Sunoco Logistics Partners transports, terminals and stores refined petroleum products in the United States. The company was founded in 2001 and has a market cap of $2.88 billion.
With the market recently on the down swing, investors have been shifting into more conservative segments of the market. That and strong Q2 results from late July have given dividend stocks like SXL a nice boost.
On July 26, Sunoco reported record distributable cash flow of $106 million, up from $55 million last year. Income to shareholders came in at $94 million, or $2.40 per unit. Cash distribution to shareholders came in at $1.215.
The analysts definitely liked what they saw, pushing the current-year estimate up 23 cents to $6.33.
Sunoco Logistics also has a strong financial profile, with an ROE of 24% well above its peer average of 14%, and an ROI of 11% against 7%. Sunoco also operates in a Zacks industry rank of 55 out of 265.
But in spite of the gains, the valuation picture still looks solid, with a forward PE of 14 a discount to its peer average of 19X.
On the chart, shares have held up really well in the weak market as investors have shifted into more conservative assets. Look for support from the trend on any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks
Momentum Trader Service.