With the Russian invasion of Ukraine grinding on and inflation lifting oil and gas prices to record levels, shares of legacy energy companies like Magellan Midstream Partners are rising fast. On Thursday the Relative Strength (RS) Rating for Magellan climbed to 84, up from 80 a day earlier.
The 84 RS Rating, which puts Magellan in the top 16% for stock price performance, also puts the company in an elite group. The RS Rating pits a stock's 12-month performance against all other stocks. Stocks that go on to make the biggest gains typically have an RS Rating of at least 80 as they launch their biggest price moves.
Institutions Buying Magellan Shares
Among its other ratings Magellan Midstream has a 72 EPS Rating and a C+ Accumulation/Distribution Rating. The C+ rating means big money investors such as mutual funds and ETFs are buying more shares than selling. Additionally, Magellan boasts a strong 93 Composite Rating.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
In terms of fundamentals, top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 27% to $1.16 per share. After reporting a 15% drop in EPS in the first quarter of 2021, Tulsa, Okla.-based Magellan reversed to a 108% surge in EPS, then 9% and 27%. Revenue last quarter shot up 45% to $809.3 million.
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Magellan Midstream is working on a consolidation with a 53.95 buy point. See if it can clear the breakout price in heavy trade.
Peers In Oil & Gas Group
Magellan Midstream earns the No. 14 rank among its peers in the Oil&Gas-Transportation/Pipeline industry group. Kinder Morgan and Oneok are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's proprietary rating identifies share price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
