2024-04-01 11:30:23 ET
Summary
- Energy stocks have experienced a remarkable revival, driving bullish momentum in the sector.
- Enterprise Products Partners L.P. units have recently outperformed the S&P 500.
- The company's fee-based model and diversified business have provided investors with more confidence.
- With Enterprise Products Partners still offering a forward yield of more than 7%, unitholders don't need to overthink its sweet bargain.
- Maintain Buy as Enterprise Products Partners looks ready to continue its solid uptrend.
Energy stocks have recently entered a revival phase that lifted the Energy Select Sector SPDR® Fund ETF ( XLE ) toward its recent highs. The sector has benefited from the resurgence in crude oil futures ( CL1:COM ), shaking off the bearish sentiments that saw CL1 bottom in December 2023. Coupled with the persistence of the OPEC+ production cuts and Russia's assessed compliance , it has managed to drive the bullish momentum bets, leading to a broad sector re-rating....
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Enterprise Products Partners: Don't Overthink Its High Yield, Sweet Bargain