Back to top

Image: Bigstock

5 Reasons to Bet on Suburban Propane Partners (SPH) Now

Read MoreHide Full Article

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.

Robust Liquidity

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.

Stock Outperformance

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 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.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Suburban Propane Partners, L.P. (SPH) - free report >>

Global Partners LP (GLP) - free report >>

CrossAmerica Partners LP (CAPL) - free report >>

Published in