EL PASO CORP - EP 6.92 P/E (fwd.) 34.30 Ret. On Eq -25.31% Ret. On Assets -4.47% Revenue. Sh 13.337 EPS -3.426 Bk. Val/sh. 11.273 Fwrd. EPS 0.10 Fwrd Bk. N/A
The potential of this stock looks very good over the course of the next year, especially given that the energy industry is not expected to do well. EP is expected to almost double in growth with a negative growth rate in the industry. EP is expected to a take a $1 billion pre-tax charge after cutting its proven natural gas reserves estimates in mid-February. It seems to have hurt the future value of the stock as its estimates over the course of a year went down a $1 to the $12 to $14 range. EP still looks very attractive at the current price, but due to the uncertainty with this energy, it would be best to hold and wait until the next quarter. The stock has increased about a $1 average over the past year, but in order to buy more there needs to be a clearer future ahead for EP and the industry. Greg Huebner Decision: Hold