Oversold 9% Yielder At 52-Week Lows, Estimates Rising, Long-Term Upside Potential

Have you ever had to hold your nose when betting on the future? This stock yields 9.29% and is 26% below analysts' average price target. It has had some rough quarters, but it's in the hottest production region in its industry and has projects coming online in 2017 that should sustain future growth. Investors with a long-term focus can pick up shares at 52-week lows. We offer two additional actionable trades to hedge your bet - 1 with a breakeven 12% below the 52-week low.

We came across Plains All American Pipeline, L.P. (NYSE:PAA), a midstream pipeline high dividend stock, on a bottom fishing expedition this week, and its chart is a real stinker - it's hitting 52-week lows and looks oversold on its stochastic chart (although it has looked oversold before on its way down). We figured that analysts must have been ganging up on PAA, with multiple downgrades, etc., but it's the exact opposite - it has a lot of upward earnings estimate revisions over the past 30 days for Q2 and Q3 '17, and also for full years 2017 and 2018. After its downward slide, PAA is now 26% below analysts' consensus price target of $32.02. It made us wonder what analysts were seeing that investors weren't agreeing with.

Source: Seeking Alpha

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