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Enterprise Products Partners is in the right sector at the right time

Readers of this space know that the preferred sectors include natural gas / oil services and infrastructure stocks, and when one can combine the two, well, it's like a double header at Yankee Stadium (or two chamber concerts at Lincoln Center). Enterprise Products Partners fits the aforementioned bill.

Enterprise Products Partners (NYSE: EPD), a publicly traded limited partnership, is an integrated provider of natural gas pipeline and processing services and natural gas liquids fractionation, storage, transportation and terminalling services.

Analysts expect record pipeline volumes to generate earnings growth for the next few years. Cash flow should be strong as well. Further, EPD has a stable of projects featuring likely high returns with low risk. In addition, Enterprise will continue to benefit from its fee-based assets, including its offshore pipeline infrastructure, such as its Gulf of Mexico assets.

Further, with size, economies of scale, and ample cash, EPD is better-positioned than many peers in that it can expand without acquisitions. The Reuters F2008/F2009 EPS consensus estimates for EPD are $1.43/$1.62.

The risks? A sustained U.S. economic slowdown would hurt EPD's results. Analysts are also keeping an eye on EPD's skilled labor costs.

The First Call mean rating for EPD is: Buy. [14 firms.] Mean 2008 target: $35. [high: $36, low: $35.]

Stock Analysis: Enterprise Products Partners is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from EPD's shares. Sell / Stop Loss if you were to purchase shares in this company: $22.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

ABB Ltd. (ABB) is electrifying the world

ABB Ltd. (NYSE: ABB) logo In the current market, safety and diversification are the order of the day (at least until the U.S. economy starts growing above trend levels, above 3%). With the aforementioned in mind, a company worth reviewing is ABB Ltd.

Switzerland-based ABB Ltd. (NYSE: ABB) is a provider of power and automation technologies designed to help utilities/industries improve performance while lowering the environmental impact.

ABB serves the electric, gas, and water utilities sectors with products, systems and services for power transmission, distribution, and power plant automation.

Continue reading ABB Ltd. (ABB) is electrifying the world

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DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 03:56 AM

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