Analyzing Energy Company Moving Averages and Broker Estimates
Moving averages
Credit Suisse (CS) maintained its outperform rating on Energy Transfer Partners (ETP). Credit Suisse also indicated that Energy Transfer Equity (ETE) expects that the proposed merger with Williams Companies (WMB) may be close in 2Q16 following the nod by WMB shareholders. Williams Companies and Williams Partners (WPZ) rose 3.5% and 3.95%, respectively, on March 1, 2016.
WMB currently trades 40% below its 100-day moving average and 6% above its 20-day moving average. WMB is currently 73% below its 52-week high and 61% above its 52-week low. Since February 8, WMB’s stock price has started to converge with its 100-day and 20-day moving averages.
The large-cap midstream companies illustrated in the above chart traded on an average 15.2% below their respective 100-day moving averages on March 1, 2016. The upstream companies are trading at an average of 17% below their 100-day moving averages.
Downstream companies are quoting at an average of 19% below their 100-day moving averages. On February 12, 2016, these midstream (AMLP) companies were 29% below their 100-day moving averages.
What do Wall Street consensus median estimates indicate?
The Wall Street analysts’ consensus median estimates indicate an impressive 42.6% upside for these US midstream companies. We can compare this to the 34.75% upside for large-cap upstream companies, based on analysts’ consensus median estimates.
Over the next 12 months, midstream operators Williams Companies (WMB) and Energy Transfer Partners (ETP) could see rises of 78% and 36%, respectively, from their current levels as of March 2, 2016, based on Wall Street analysts’ consensus median estimates.
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