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Sprague Resources (SRLP) Stock Sinks As Market Gains: What You Should Know

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Sprague Resources (SRLP - Free Report) closed at $16.27 in the latest trading session, marking a -0.73% move from the prior day. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 1.64%.

Prior to today's trading, shares of the oil products and natural gas storage and distribution company had gained 8.33% over the past month. This has outpaced the Oils-Energy sector's loss of 7.76% and the S&P 500's loss of 2.23% in that time.

Wall Street will be looking for positivity from SRLP as it approaches its next earnings report date. This is expected to be November 5, 2020. In that report, analysts expect SRLP to post earnings of -$0.39 per share. This would mark year-over-year growth of 9.3%. Our most recent consensus estimate is calling for quarterly revenue of $328.24 million, down 43.66% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $2.22 billion. These totals would mark changes of -26.36% and -36.71%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SRLP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.9% lower. SRLP is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SRLP has a Forward P/E ratio of 20.24 right now. For comparison, its industry has an average Forward P/E of 8.49, which means SRLP is trading at a premium to the group.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SRLP in the coming trading sessions, be sure to utilize Zacks.com.


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