In the oil and gas transportation and storage sector, Plains All American Pipeline (NASDAQ:PAA) saw a 1.58% decline in its stock price on Tuesday, closing at $14.91. This underperformance was notable against the backdrop of gains in major indices such as the S&P 500, Dow, and Nasdaq.
Despite this recent dip, PAA's monthly loss of 1.11% was less severe than the broader Oils-Energy sector's 5.73% decline and the S&P 500's 3.58% decrease.
Looking forward, PAA's earnings report is scheduled for release on November 3, 2023. The report is expected to reveal a downward trend in earnings per share (EPS), with a forecasted drop of 27.27% to $0.24. However, the company's revenue is predicted to see an uptick of 7.31% to $15.38 billion.
According to consensus estimates, PAA's full-year earnings are anticipated to be $1.29 per share, marking a rise of +2.38%. Meanwhile, the company's revenue is projected to slightly decrease by -0.19% to $57.23 billion.
Despite these mixed expectations, analysts' revisions have painted an optimistic business outlook for PAA. Last month, the consensus EPS estimate rose by 0.59%, suggesting a positive sentiment among analysts.
InvestingPro Insights
InvestingPro's real-time data reveals an interesting trend for Plains All American Pipeline (NASDAQ:PAA). The company's price-to-earnings (P/E) ratio stands at 11.6, which is lower than the industry average of 13.8, indicating that PAA may be undervalued. Additionally, PAA's dividend yield is currently at a robust 7.8%, much higher than the sector's average of 4.5%, making it an attractive option for income-focused investors.
Onto the InvestingPro Tips, one suggests that investors should pay close attention to the upcoming earnings report. A decline in EPS might be a cause for concern, but the forecasted revenue increase could balance things out. Another tip from InvestingPro points out that PAA's lower-than-average P/E ratio and high dividend yield might be an enticing combination for value and income investors. It's worth noting that there are over 100 additional tips available for PAA on the InvestingPro platform, offering in-depth insights for potential investors.
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