EPD Should I Buy
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Enterprise Products Partners L.P. (EPD) is a solid buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. The company has a strong dividend history, stable cash flows, and benefits from rising demand for U.S.-produced oil and gas. Despite some bearish technical indicators, its fundamentals and positive catalysts make it a good long-term investment.
The technical indicators suggest a bearish trend. The MACD is below zero and negatively expanding, RSI is neutral at 38.106, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). However, these short-term signals are less relevant for a long-term investor.
Rising global oil prices due to geopolitical tensions, benefiting U.S. midstream companies like EPD.
$4.8 billion in major projects under construction, supporting future growth.
A strong balance sheet (A- rating) ensures dividend stability.
27 consecutive years of dividend increases, with a current yield of 5.9%.
Bearish technical indicators suggest short-term weakness.
Limited upside from LPG exports in the near term as noted by analysts.
In Q4 2025, revenue dropped by 2.87% YoY to $13.79 billion, but net income increased by 1.50% YoY to $1.63 billion. EPS rose by 1.35% YoY to 0.75, and gross margin improved by 5.37% YoY to 22.16%. These metrics indicate stable profitability and improving efficiency despite revenue decline.
Analysts have raised price targets recently, with targets ranging from $36 to $44. Positive sentiment is driven by expectations of higher commodity prices and increased demand for U.S. energy exports. Ratings are mixed, with Outperform and Hold being the most common.
