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4 Reasons to Add Hess Midstream Partners to Your Portfolio

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Earnings estimates for Hess Midstream Partners LP (HESM - Free Report) have been revised upward over the past 30 days, reflecting analyst’s confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 1.6% and 3.5% north to $1.26 and $1.49 per share, respectively.

Hess Midstream Partners LP is a master limited partnership. The firm is based in Houston, TX. The company's operating segments consist of/comprise gathering, processing, storage and terminaling as well as export.

Let’s focus on the factors that make Hess Midstream Partners LP an attractive stock to hold on to for greater returns.

Price Appreciation: Units of Hess Midstream Partners LP have rallied 12.8% in the past six months, outperforming the industry’s growth of 4.4%. The stock carries a Zacks Rank #2 (Buy).



VGM Score: The stock has a favorable VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with an impressive VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.

Earnings Results & Surprise History: The firm delivered earnings of 32 cents per unit in second-quarter 2018, beating the Zacks Consensus Estimate of 30 cents by 6.7%. The firm also boasts an encouraging earnings surprise history, with its bottom line having surpassed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 3.9%.

Cash Distribution Growth: The partnership continues to deliver returns to its shareholders in the form of regular cash distribution. It has raised its cash distribution for five consecutive quarters. In second-quarter 2018, the firm hiked the quarterly distribution rate by 3.6% to 34.25 cents per share compared with the first quarter’s 33.33 cents.

Other Stocks to Consider

Some other top-ranked stocks from the Zack Oil & Gas Sector are CONSOL Coal Resources LP , NOW Inc. (DNOW - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CONSOL Coal Resources pulled off an average positive surprise of 2.72% in all the trailing four quarters. The Zacks Consensus Estimate for 2018 EPS moved 1.5% up over the past 30 days to $2.10 per share.

NOW delivered an average four-quarter beat of 130.7%. The consensus mark for 2018 EPS has been revised 100% upward over the past 30 days to 30 cents per share.

Helix Energy Solutions came up with an average four-quarter earnings surprise of 66.7%. The Zacks Consensus Estimate for 2018 EPS has been raised 5.6% over the past 30 days to 19 cents per share.

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