Back to top

Image: Bigstock

Plains All American Pipeline (PAA) Beats Stock Market Upswing: What Investors Need to Know

Read MoreHide Full Article

The latest trading session saw Plains All American Pipeline (PAA - Free Report) ending at $18.56, denoting a +1.48% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Heading into today, shares of the oil and gas transportation and storage company had gained 8.68% over the past month, lagging the Oils-Energy sector's gain of 10.33% and outpacing the S&P 500's gain of 0.48% in that time.

The investment community will be closely monitoring the performance of Plains All American Pipeline in its forthcoming earnings report. The company is scheduled to release its earnings on May 3, 2024. The company's earnings per share (EPS) are projected to be $0.37, reflecting a 9.76% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $13.4 billion, indicating an 8.6% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.24 per share and a revenue of $54.01 billion, demonstrating changes of -12.68% and +10.87%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Plains All American Pipeline. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Plains All American Pipeline is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Plains All American Pipeline is presently being traded at a Forward P/E ratio of 14.75. For comparison, its industry has an average Forward P/E of 13.09, which means Plains All American Pipeline is trading at a premium to the group.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 23% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

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

Plains All American Pipeline, L.P. (PAA) - free report >>

Published in