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Some of my biggest winners in the past remain very attractive opportunities today. I detail why these names combine high yield, strong growth, and sound fundamentals. I also discuss the risks they face.
Does Western Midstream (WES) have what it takes to be a top stock pick for momentum investors? Let's find out.
These top oil stocks stand out entering September, as both currently sport a Zacks Rank #1 (Strong Buy) and offer dividend yields above 5%.
The best income investments combine attractive valuations with strong underlying cash flows. We discuss two picks rich in cash flows and fundamentals, currently trading at bargain valuations. We like to get paid while waiting for value to be recognized.
Midstream MLPs and corporations generally posted strong second-quarter earnings, benefiting from record volume throughput, strong margins, and robust demand for natural gas and natural gas liquids (NGL) exports. Companies also demonstrated the defensive nature of their fee-based cash flows.
I reiterate my Strong Buy on Western Midstream: the April call worked, returning ~25%, but the growth-led thesis ahead still stands. The rerating to EPD's multiple is largely done, so returns from here rely on 7-8% EBITDA growth, not multiple expansion. Growth alone supports ~15% returns at a flat multiple; the compressed ~7.6% yield matters mainly for fresh income-only entries.
Western Midstream offers above-average growth potential. WES prioritizes opportunistic acquisitions, exemplified by the Aris Water and Brazos deals. Take-or-pay contracts and long-lived agreements provide WES with downside protection.
Western Midstream Partners, LP (NYSE: WES - Get Free Report)'s share price reached a new 52-week high on Tuesday. The stock traded as high as $49.17 and last traded at $48.61, with a volume of 656029 shares. The stock had previously closed at $48.92. Wall Street Analysts Forecast Growth A number of analysts have recently