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EPD Stock Looks Undervalued Ahead of Q1 Results: Time to Buy?
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Key Takeaways
EPD reports Q1 2026 results April 28; consensus sees EPS of 71 cents on $13.2B revenue.
EPD's NGL Pipelines & Services gross margin is pegged at $1,504.64M vs. $1,418M a year ago.
EPD has 50,000 miles of pipelines and 300M barrels storage; nearly 90% contracts raise fees with inflation.
Enterprise Products Partners LP (EPD - Free Report) is set to report first-quarter 2026 results on April 28, before the opening bell.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 71 cents per share, implying an improvement of 10.9% from the year-ago reported number. It has witnessed no estimate revisions in the past seven days. The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $13.2 billion, suggesting a 14.4% decline from the year-ago figure.
Image Source: Zacks Investment Research
EPD beat on earnings in two of the trailing four quarters and missed the same twice, delivering an average negative surprise of 1.88%. This is depicted in the graph below:
Q1 Earnings Whispers for EPD
Our proven model predicts an earnings beat for EPD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is just the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note Ahead of EPD’s Q1 Results
Enterprise Products is a leading midstream energy player that transports crude oil, natural gas and other commodities. Due to the very nature of the business model, the partnership’s operations are not highly vulnerable to volatility in oil and gas prices and are therefore likely to have generated stable fee-based revenues in the March quarter of 2026. The Zacks Consensus Estimate for the gross operating margin from the NGL Pipelines & Services business unit, which contributes the most to the partnership’s bottom line, is pegged at $1,504.64 million, suggesting an improvement from $1,418 million in the March quarter of 2025.
EPD’s Price Performance & Valuation
EPD stock has jumped 21.2% over the past year, outperforming the industry’s 11.2% growth. Williams (WMB - Free Report) , another pipeline major, has surged 21.4% over the same time frame, while Kinder Morgan Inc. (KMI - Free Report) has gained 18.2%.
One-Year Price Chart
Image Source: Zacks Investment Research
Although EPD's prices outperformed the industry, the partnership appears relatively undervalued. The midstream giant's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 11.70, reflecting that it is trading at a discount compared with the industry average of 11.95. WMB and KMI are both valued lower at 18.04x and 14.74x, respectively.
Image Source: Zacks Investment Research
Investment Thesis of EPD
Enterprise Products' pipeline network spans more than 50,000 miles, transporting oil, natural gas and other commodities. The partnership also has more than 300 million barrels of liquid storage capacity, generating stable cash flows, like WMB and KMI. Importantly, EPD’s business model is inflation-protected because almost 90% of its long-term contracts include a provision for increasing fees when the business environment becomes inflationary. This is how the midstream energy player is able to safeguard its cash flow generation in all business scenarios.
EPD is also expected to generate incremental cash flow from its $4.8 billion in key capital projects, which are yet to come online. Also, due to the resilience of its business model, the partnership has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned $62 billion to unitholders through both repurchases and distributions.
Last Word
Given the backdrop, it might be wise for investors to bet on the undervalued stock right away.
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EPD Stock Looks Undervalued Ahead of Q1 Results: Time to Buy?
Key Takeaways
Enterprise Products Partners LP (EPD - Free Report) is set to report first-quarter 2026 results on April 28, before the opening bell.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 71 cents per share, implying an improvement of 10.9% from the year-ago reported number. It has witnessed no estimate revisions in the past seven days. The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $13.2 billion, suggesting a 14.4% decline from the year-ago figure.
EPD beat on earnings in two of the trailing four quarters and missed the same twice, delivering an average negative surprise of 1.88%. This is depicted in the graph below:
Q1 Earnings Whispers for EPD
Our proven model predicts an earnings beat for EPD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is just the case here.
The leading midstream player has an Earnings ESP of +0.80% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note Ahead of EPD’s Q1 Results
Enterprise Products is a leading midstream energy player that transports crude oil, natural gas and other commodities. Due to the very nature of the business model, the partnership’s operations are not highly vulnerable to volatility in oil and gas prices and are therefore likely to have generated stable fee-based revenues in the March quarter of 2026. The Zacks Consensus Estimate for the gross operating margin from the NGL Pipelines & Services business unit, which contributes the most to the partnership’s bottom line, is pegged at $1,504.64 million, suggesting an improvement from $1,418 million in the March quarter of 2025.
EPD’s Price Performance & Valuation
EPD stock has jumped 21.2% over the past year, outperforming the industry’s 11.2% growth. Williams (WMB - Free Report) , another pipeline major, has surged 21.4% over the same time frame, while Kinder Morgan Inc. (KMI - Free Report) has gained 18.2%.
One-Year Price Chart
Although EPD's prices outperformed the industry, the partnership appears relatively undervalued. The midstream giant's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 11.70, reflecting that it is trading at a discount compared with the industry average of 11.95. WMB and KMI are both valued lower at 18.04x and 14.74x, respectively.
Investment Thesis of EPD
Enterprise Products' pipeline network spans more than 50,000 miles, transporting oil, natural gas and other commodities. The partnership also has more than 300 million barrels of liquid storage capacity, generating stable cash flows, like WMB and KMI. Importantly, EPD’s business model is inflation-protected because almost 90% of its long-term contracts include a provision for increasing fees when the business environment becomes inflationary. This is how the midstream energy player is able to safeguard its cash flow generation in all business scenarios.
EPD is also expected to generate incremental cash flow from its $4.8 billion in key capital projects, which are yet to come online. Also, due to the resilience of its business model, the partnership has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned $62 billion to unitholders through both repurchases and distributions.
Last Word
Given the backdrop, it might be wise for investors to bet on the undervalued stock right away.