Assessing Enterprise Products Partners’ Valuation After Jim Cramer’s Bullish Call and Recent Stock Jump

Enterprise Products Partners (EPD) just got a boost from the spotlight, after Jim Cramer called out its income potential and natural gas liquids growth story, helping the units climb roughly 11% from recent levels.

See our latest analysis for Enterprise Products Partners.

That Cramer fueled jump sits against a steadier backdrop, with the latest share price at $31.94, a modest year to date share price return, and a much stronger five year total shareholder return, suggesting long term income driven momentum remains very much intact.

If Cramer’s call has you rethinking your watchlist, this could also be a smart moment to explore fast growing stocks with high insider ownership and see what other under the radar compounders are building momentum.

Yet with EPD still trading below analyst targets and sporting a hefty income stream alongside mixed earnings expectations and fresh downgrades, investors face a key question: is this Cramer backed rally a genuine buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 10.4% Undervalued

With Enterprise Products Partners last closing at $31.94 and the most popular narrative pointing to a fair value near the mid 30s, the story hinges on how steadily growing earnings and margins can support a higher multiple over time.

The completion of two gas processing plants in the Permian, along with several key pipeline and export terminal projects, is expected to enhance Enterprise Products Partners’ infrastructure, potentially driving revenue growth from increased volume handling and exports. With no major planned downtimes for the PDH plants after recent maintenance, Enterprise is poised to capture additional EBITDA that was previously lost to unplanned outages, suggesting potential earnings improvement.

Read the complete narrative.

Curious how modest top line expectations can still justify a richer earnings multiple and a premium fair value? The narrative leans on fatter margins, disciplined buybacks, and a long runway of projects coming online, but the exact earnings path and valuation bridge remain behind the full set of assumptions.

Result: Fair Value of $35.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated debt levels and renewed operational hiccups at key facilities could quickly erode the earnings growth and valuation upside that analysts are banking on.

Find out about the key risks to this Enterprise Products Partners narrative.

Build Your Own Enterprise Products Partners Narrative

If you see the story differently, or want to dive into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.

A great starting point for your Enterprise Products Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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