EPD boasts a stable business model and is not significantly exposed to the volatility in oil and gas prices.
Axon Enterprise (AXON) shares touched all-time highs Friday after the Taser weapon maker reported better-than-expected results and guidance on soaring demand.
The company's growth is compounding at an extraordinary rate.
AXON's Q3 revenues increase 31.7% year over year, driven by the impressive performance of its Software & Sensors and TASER segments.
PEG's operating revenues in the third quarter total $2.64 billion, which beat the Zacks Consensus Estimate by 6.6%. The top line also increases 7.6% from the year-ago figure.
Enterprise Products Partners is a proven income machine in uncertain times. In addition to its well-known strengths, an additional powerful catalyst has recently emerged. I think the market is significantly undervaluing EPD's cash flow and unitholder capital return growth potential in the coming years, making it a Strong Buy.
Public Service Enterprise Group beat Wall Street estimates for third-quarter profit on Monday, as the electric and gas utility benefited from growth in distribution margins and higher retail sales.
Enterprise Products Partners L.P. has delivered yet another quarter of material cash flow growth, while maintaining a robust balance sheet. From Q3 2024 earnings data points and messages, it is clear that EPD has stepped up its investment game. Given EPD's upper investment grade credit rating, 1.7x distribution coverage and inherently stable business model, the risks of funding the ambitious growth at the expense of financial safety are limited.
Enterprise is increasing its capex to capture growth opportunities
Enterprise Products Partners L.P.'s Q3 financials showed some unevenness when compared to consensus estimates. Here, I want to urge you to look past the quarterly fluctuations and focus on the underlying business developments. Its ongoing CAPEX projects and expansion of AI technologies led me to see that it is well-positioned to capitalize on the surging energy demand in the years to come.
Enterprise Products Partners investors have endured recent weakness as EPD pulled back from its recent highs. EPD is navigating AI data center-driven growth prospects as it accelerates its growth CapEx to take advantage of the opportunities. Unitholders who reduced their exposure could have been unduly concerned with the impact on future distributions.
I am recommending Hewlett Packard Enterprise as a 'Strong Buy' with a five-year target price of $38.91 per share. Justified with its acquisition of Juniper in early 2025, comprehensive IT portfolio, and macroeconomic and industry tailwinds. While the market penalised HPE due to its low gross profit margins reported in Q3'24, I believe margins will increase as HPE's revenue mix shifts to higher-margin services.