Plains All American Stock Is a Top Pick for Growth and Income

• Plains All American Pipeline (PAA) demonstrates strong technical momentum, with shares up more than 45% over the past year.
• The stock is trading at a new 5-year high.
• PAA boasts a 6.54% dividend yield, which adds to its appeal.
• PAA’s crude oil and NGL segments are positioned for volume-driven growth, supported by long-term commitments and increasing throughput.

Today’s Featured Stock

Valued at $18.2 billion, Plains All American Pipeline (PAA) is a master limited partnership involved in the transportation, storage, terminalling, and marketing of crude oil, natural gas, natural gas liquids, and refined products. The partnership has operations in the Permian Basin, South Texas/Eagle Ford area, Rocky Mountain, and Gulf Coast in the U.S., and Manito, South Saskatchewan, and Rainbow in Canada. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. PAA checks those boxes. The Trend Seeker issued a new “Buy” signal on Aug. 18. Since then, the stock has gained 6.12%.

Barchart’s Technical Indicators for Plains All American Pipeline

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Plains All American Pipeline scored a 5-year high of $25.89 on Sept. 1.

• Plains All American Pipeline has a Weighted Alpha of 53.78.
• PAA has a 100% “Buy” opinion from Barchart.
• The stock has gained 45.22% over the past 52 weeks.
• Plains All American Pipeline has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $25.83 with a 50-day moving average of $23.81.
• PAA had 7 new highs and gained 4.56% in the last month.
• 60-month beta of 0.50.
• Relative Strength Index (RSI) is at 68.01.
• There’s a technical support level around $25.73.

Don’t Forget the Fundamentals

• $18.2 billion market capitalization.
• 16.13x trailing price-earnings ratio.
• 6.54% dividend yield.
• Revenue is projected to grow 33.73% this year and another 2.33% next year.
• Earnings are estimated to increase by 11.46% this year but decrease by 9.69% next year.

Analyst and Investor Sentiment on Plains All American Pipeline

• The Wall Street analysts followed by Barchart give the stock 7 “Strong Buy,” 1 “Moderate Buy,” 7 “Hold,” 1 “Moderate Sell,” and 1 “Strong Sell” ratings with price targets from $20 to $27.
• 42,180 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• TipRanks’ analysts’ price targets are between $23 and $27 with a consensus price target of $25.11.

The Bottom Line on Plains All American Pipeline

This MLP has everything you'd want. A dividend higher than the 30-year Treasury and revenue and earnings projections of a growth stock. What’s not to like?

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculate should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.