Below are the three companies in the Gas Utilities industry with the highest future earnings growth. The growth of earnings per share (next fiscal year estimated vs. current fiscal year estimated) is important to gauge future profitability and relative value. Higher EPS growth generally justifies higher earnings multiples.
Amerigas Partners (NYSE:APU) is highest with future earnings growth of 29.0%. AmeriGas Partners, L.P. is a retail marketer of propane. The Company serves residential, commercial, industrial, motor fuel, and agricultural customers in the United States. AmeriGas operates an extensive storage and distribution network, using pipelines, barges, rail cars, and tanker trucks to transport propane to local-market distribution locations.
Amerigas Partners share prices have moved between a 52-week high of $51.50 and a 52-week low of $36.76 and are now trading 20% above that low price at $44.17 per share. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has remained constant.
Ferrellgas Partners (NYSE:FGP) is next with future earnings growth of 25.4%.
Based on a current price of $22.40, Ferrellgas Partners is currently 10.2% above its average consensus analyst price target of $20.12. Ferrellgas Partners shares should encounter resistance at the 200-day moving average (MA) of $23.29 and support at the 50-day MA of $21.10.
Finishing up the top three is National Fuel Gas (NYSE:NFG), with future earnings growth of 21.3%. National Fuel Gas has traded 182,000 shares thus far today, vs. average volume of 576,000 shares per day. The stock has matched the Dow (with a 3.6% move) and matched the S&P 500 (with a 3.6% move) during today's trading.
