Is EQT Midstream Partners, LP (NYSE:EQM) a Sensible Stock at Current Levels?

Are shares of EQT Midstream Partners, LP (NYSE:EQM) ready to make a move?  Increased volatility and interest from bargain investors have put the stock on a number of investor’s watchlists of late.  The stock is pricing at $77.48 after moving 1.52% from the opening bell. 

After a recent check, shares of EQT Midstream Partners, LP (NYSE:EQM) have been seen trading 0.92% off of the 50-day high and 20.27% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 5.86% away from the 20-day moving average and 9.13% off of the 50-day average. If we take a wider approach, shares have been trading 4.79% away from the 200-day moving average.

Over the last year, EQT Midstream Partners, LP (NYSE:EQM)’s stock has performed 2.94%. For the last six months, the stock has performed 1.87%. From the start of the calendar year, shares have been 5.99%. Zooming in closer, company stock has been 1.49% for the quarter, 9.62% over the past month, and 2.53% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. EQT Midstream Partners, LP (NYSE:EQM) current has a Beta score of 0.81.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  EQT Midstream Partners, LP’s EPS is 5.23.  Their EPS should be compared to other companies in the Basic Materials sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  EQT Midstream Partners, LP’s  P/E ratio is 14.83. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  EQT Midstream Partners, LP’s  PEG is 1.49.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 20.40%.  Calculated by dividing EQT Midstream Partners, LP’s annual earnings by its total assets, investors will note a return on assets of 13.20%.  Finally, EQT Midstream Partners, LP’s return on investment stands at 17.30% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 1.80 for EQT Midstream Partners, LP (NYSE:EQM).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.