Do Parker Drilling Company (PKD) and Enbridge Energy Partners LP (EEP) Make Good Investment Prospects?
New York, NY – GDP INSIDER – 03/23/2015.
This article discusses two companies: Parker Drilling Company (NYSE:PKD) and Enbridge Energy Partners LP (NYSE:EEP)
Parker Drilling Company (NYSE:PKD) continued to climb on Friday with the stock gaining another 7.07% or $0.22 to close at $3.33 with more than 1.808 million shares changing hands. The stock has been trading between $2.59 and $3.67 for the last three months with the largely oil focused drilling and management services company suffering from the lack of new contracts, due to the slump in oil prices. Despite the energy sector’s woes, Parker Drilling Company is now outperforming the S&P 500 with the stock up 8.78% for the year so far, compared to the S&P 500 which has only gained 2.39% over the same period. With the stock now experiencing a bullish MACD crossover the stock may continue to increase further in the short term, but without the oil industry getting some positive news, it is unlikely that the stock will make significant gains making it a hold at best.
Enbridge Energy Partners LP (NYSE:EEP) fell back again slightly on Friday, with the stock declining 1.28% or $0.47 to close at $36.17 on fairly active trading of 1.817 million shares, compared to its three month average trading volume of 1.013 million. The crude oil and natural gas transportation company closed its public offering of 8 million Class A shares of common stock on Friday, which will give the company a net influx of around $289 million that it intends to use to fund capital expansion projects, as well as increasing its working capital. The stock has been suffering from the decline in oil prices and has lost 9.30% since the beginning of the year but with quarterly revenue growth of 5.6% year on year and diluted EPS of $0.67, the stock may meet its one year target estimate of $40.31 over the medium term, making it a solid hold at this time.
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