Here's Why Hold Strategy is Apt for Enterprise Products Stock Now

Enterprise Products Partners LP EPD is a leading midstream energy player with low exposure to volume and price risks. The Zacks Consensus Estimate for the partnership’s 2024 earnings per unit is pegged at $2.69, indicating a year-over-year increase of 6.3%.Factors Working in FavorEnterprise Products, which currently carries a Zacks Rank #3 (Hold), has a stable business model and is not significantly exposed to the volatility in oil and gas prices. The partnership generates stable fee-based revenues from its extensive pipeline network spread across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.   The midstream infrastructure provider has storage assets that can hold more than 260 million barrels of NGL, petrochemicals, refined products and crude oil. These assets can store 14 billion cubic feet of natural gas. Enterprise Products has $6.9 billion of key approved projects under construction that are likely to provide incremental fee-based revenues.The partnership’s balance sheet has lower debt exposure than the composite stocks belonging to the industry. The liquidity profile of EPD is impressive. Along with the third-quarter 2024 results, the partnership reported consolidated liquidity of $5.6 billion, which includes unrestricted cash and available borrowing capacity.RisksEnterprise Products has several assets providing midstream services for many years. This has raised the possibility of investing massive capital in maintaining those infrastructures. Thus, EPD could witness an increase in maintenance or repair expenses.A slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output, is hurting production. This is affecting the demand for transportation and storage of EPD to some extent. Other midstream players that are also getting impacted by slowing production growth are Kinder Morgan Inc. KMI, Enbridge Inc. ENB and MPLX LP MPLX.  The three midstream players mentioned above recently reported quarterly results. Like EPD, Kinder Morgan and MPLX missed the Zacks Consensus Estimate for earnings in the third quarter of 2024, while Enbridge met the same.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report MPLX LP (MPLX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks