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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 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 1.6% and 1.4% north to $1.29 and $1.49 per share, respectively.

Hess Midstream Partners LP is a master limited partnership. The firm is based in Houston, TX. Its operating segments comprise gathering, processing, storage and terminaling plus 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: Year to date, units of Hess Midstream Partners LP have inched up 0.6% against the industry’s decline of 6.7%. 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 top Zacks Rank offer the best investment bets.

Earnings Results & Surprise Record: The firm delivered earnings of 34 cents per unit in third-quarter 2018, beating the Zacks Consensus Estimate of 32 cents by 6.3%. The firm also boasts an encouraging surprise history with its bottom line having surpassed the consensus mark in three of the last four reported quarters, the average beat being 2.31%.

Cash Distribution Growth: The partnership consistently delivers returns to its shareholders in the form of regular cash distribution. It has raised its cash distribution for six consecutive quarters. In third-quarter 2018, the firm hiked the quarterly distribution to 35.75 cents per unit, which represents year-over-year growth of 15% and 3.6%, sequentially.

Other Stocks to Consider

Some other top-ranked stocks from the Zacks Oil & Gas sector are Canadian Solar Inc. (CSIQ - Free Report) , Clearway Energy, Inc. (CWEN - Free Report) and Warrior Met Coal Inc. (HCC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Solar pulled off average positive surprise of 49.66% in the trailing four reported quarters. The Zacks Consensus Estimate for 2018 EPS moved 41.6% up over the past 30 days to $2.45 per share.

Clearway Energy delivered average four-quarter beat of 178.04%. The consensus mark for 2018 EPS has been revised 2.8% upward over the past 30 days to $1.45 per share.

Warrior Met Coal came up with average four-quarter earnings surprise of 0.62%. The consensus estimate for 2018 EPS has been raised 3% over the past 30 days to $8.23 per share.

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