Momentum Stock Watch: Buckeye Partners, L.P. (BPL)

Company Profile:

Buckeye Partners, L.P. (BPL) is a publicly traded master limited partnership which owns and operates, or owns a significant interest in, a diversified global network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing and marketing of liquid petroleum products. Buckeye is one of the largest independent liquid petroleum products pipeline operators in the United States in terms of volumes delivered, with approximately 6,000 miles of pipeline. Buckeye also uses its service expertise to operate and/or maintain third-party pipelines and perform certain engineering and construction services for its customers. Buckeye Partners, L.P. was founded in 1886 and is based in Houston, Texas.

Recent News:

Buckeye reported a net loss attributable to Buckeye’s unitholders for the third quarter of 2018 of $745.8 million compared to net income attributable to Buckeye’s unitholders for the third quarter of 2017 of $116.2 million.

On, Nov. 02, 2018, the company announced that as a result of its strategic review it is taking several actions designed to: (1) maintain Buckeye’s investment grade credit rating by reducing leverage; (2) provide increased financial flexibility, eliminating the need for Buckeye to access the public equity markets to fund annual growth capital; and (3) reallocate capital to the higher return growth opportunities across our remaining assets.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BPL’s strengths can be seen in its better profitability and better solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator, the RSI(14) stands at 45.56 with positive bias. We rate Buckeye Partners, L.P. (BPL) a STRONG BUY.

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