Suburban Propane Partners, L.P.’s (SPH - Free Report) strong fundamentals and healthy liquidity along with growth projections make it a solid investment option.
Let’s analyze the factors that make this currently Zacks Rank #1 (Strong Buy) stock an ideal investment bet. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upward Estimate Revision
The Zacks Consensus Estimate for fiscal 2020 earnings per unit has moved north to 80 cents, indicating a 66.7% improvement in the past 60 days.
The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $1.15 per unit, suggesting a 19.8% rise in the past 60 days.
Positive Surprise History
Suburban Propane Partners’ trailing four-quarter earnings surprise is 4.88%, on average.
As of Jun 27, Suburban Propane Partners had long-term borrowings of $1,224.7 million, down from $1,260 million as of Mar 31, 2020. Also, the firm’s times interest earned (TIE) ratio improved to 1.68 at the end of the fiscal third quarter from 1.50 sequentially. Such a strong TIE ratio reflects the partnership’s ability to meet its debt obligations in the near future.
Moreover, it does not have any long-term debt maturity until fiscal 2024 and thereafter.
The stock has gained 4.7% against the industry’s decline of 4.2% in the past month.
Favorable VGM Score
Suburban Propane Partners currently has a VGM Score of A. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank of 1 or 2 (Buy) offer the best upside potential.
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Global Partners LP (GLP - Free Report) , TC PipeLines, LP (TCP - Free Report) and CrossAmerica Partners LP (CAPL - Free Report) , all stocks are carrying a Zacks Rank #2, presently.
The Zacks Consensus Estimate for Global Partners has moved north to $2.29 in the past 60 days against the previous loss estimate of 20 cents. Also, the same for 2020 earnings of TC PipeLines and CrossAmerica Partners has been revised 4.2% and 19.7% upward, respectively, in the past 60 days.
Further, Global Partners, TC PipeLines and CrossAmerica Partners delivered an earnings surprise of 174.56%, 19.34% and 42.04% each, on average, in the last four quarters.
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