With EPD generating stable fee-based revenues, which is likely to have aided its Q1 earnings, investors shouldn't wait for a better entry point.
In February, Axon Enterprise (AXON 4.03%) reported full-year 2024 revenue of $2.1 billion, marking its third consecutive year with over 30% top-line growth. The stock soared over 15% on the earnings news, but shares have been volatile along with the rest of the market in the past two months.
Enterprise Products Partners (EPD -0.02%) is a leading participant in the U.S. midstream sector. But it isn't the largest player, it doesn't have the highest yield, and it doesn't offer the longest history of regular dividend increases.
I give a buy rating to Public Service Enterprise Group due to its strong positioning to capitalize on rising power demand from AI and electrification. PEG's regulated utility business in New Jersey drives substantial earnings, with minimal tariff exposure and strong demand from data centers enhancing growth prospects. PEG's $26 billion capex plan focuses on system modernization and grid resilience, supporting a 6%-7.5% rate base CAGR and sustainable EPS and DPS growth.
In the midstream energy space, EPD has the highest credit rating. In comparison, ENB has much higher exposure to debt capital.
Public Service Enterprise Group is New Jersey's largest utility, serving 2.4 million electric and 1.9 million natural gas customers, with a focus solely on New Jersey. Public Service Enterprise Group's lower yield compared to peers suggests potential for higher earnings growth, but its historical GAAP earnings growth is modest. The company plans to invest $21-$24 billion from 2025-2029, aiming for a 5%-7% non-GAAP operating earnings growth, though past performance shows limited GAAP growth.
Enterprise Products Partners (EPD 2.02%), one of the largest midstream natural gas and crude oil pipeline companies in America, is usually considered a slow-growth stock. But over the past five years, this boring but reliable income stock rallied about 93%.
Axon Enterprise (AXON -2.16%) is one of the best-performing stocks of the last 10 years, up roughly 2,000% during that time.
Activist Elliott Management could help spur a great opportunity for shareholders now that the firm has a stake in Hewlett Packard Enterprise.
Hewlett Packard (HPE) offers stable income with growth potential in AI and High Performance Computing, supported by solid financials and attractive valuation. HPE's consistent free cash flow and a forward dividend yield of 3.59% make it a lucrative option for income-seeking investors. HPE's investments in AI, edge computing, despite tariff risks.
Up more than 2,000% just since 2018, Axon Enterprise (AXON 2.97%) stock has already turned at least a few savvy investors into millionaires. The question is, can it do it again anytime soon?
: EPD is set to generate additional fee-based earnings with major capital projects either currently in service or under construction.