Noble Midstream Partners LP’s (NBLX - Free Report) strong fundamentals and healthy liquidity along with solid growth projections make it an attractive investment option.
Let’s analyze the factors that make this currently Zacks Rank #2 (Buy) stock an ideal investment bet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2020 earnings per unit has moved north to $1.57, indicating a 14.6% improvement in the past 60 days.
The Zacks Consensus Estimate for 2021 earnings is pegged at $1.79 per unit, suggesting a 14.7% rise in the past 60 days.
Noble Midstream Partners’ trailing four-quarter earnings surprise is 52.47%, on average.
As of Jun 30, 2020, Noble Midstream Partners had $428 million in liquidity available under its revolving facility and cash in hand worth $12.7 million, enough to meet its near-term obligations.
Also, the firm’s times interest earned (TIE) ratio at the end of the second quarter was 7.19. The TIE ratio greater than 1 reflects the partnership’s ability to clear its debt load in the near future.
Return on Equity (ROE)
The firm’s ROE for the trailing 12 months is 20.39%, comparing favorably with the industry’s 3.77%. This uptrend highlights its higher efficiency in utilizing its shareholders’ funds than its peers.
The stock has rallied 64.2%, outperforming the industry’s rise of 42.4% in the past six months.
Favorable VGM Score
Noble Midstream 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 #1 or 2 offer the best upside potential.
Other Stocks to Consider
A few other top-ranked stocks in the same industry are Concho Resources Inc. (CXO - Free Report) , EOG Resources, Inc. (EOG - Free Report) and Parsley Energy, Inc. (PE - Free Report) , all stocks are carrying the same Zacks Rank as Noble Midstream Partners, presently.
Concho Resources delivered an earnings surprise of 67.15%, on average, in the last four quarters. It has a long-term (three-five years) earnings growth rate of 11.93%.
EOG Resources has a long-term earnings growth rate of 8.38%. The Zacks Consensus Estimate for 2020 earnings has moved 8.5% north in the past 30 days.
Parsley Energy delivered an earnings surprise of 28.26%, on average, in the trailing four quarters. It has a long-term earnings growth rate of 36.53%.
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