Ultrapar

UGP

Market cap $6.44B

Investors looking for stocks in the Oil and Gas - Production and Pipelines sector might want to consider either Ultrapar Participacoes S.A. (UGP) or Kinder Morgan (KMI).

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Does Ultrapar Participacoes S.A. (UGP) have what it takes to be a top stock pick for momentum investors?

Ultrapar Participacoes (UGP) possesses solid growth attributes, which could help it handily outperform the market.

Investors interested in Oil and Gas - Production and Pipelines stocks are likely familiar with Ultrapar Participacoes S.A. (UGP) and MPLX LP (MPLX).

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

I'm upgrading Ultrapar from hold to buy, driven by a potential Chevron acquisition of a 30% stake in Ipiranga. UGP's market cap undervalues its non-Ipiranga businesses, which are now growing faster and contributing more to EBITDA. If Chevron pays $1.5 billion for 30% of Ipiranga, the market should re-rate UGP's multiples, implying at least 33% upside.

Brazilian conglomerate ‌Ultrapar has tapped investment bank BTG Pactual to manage the potential sale of a stake in fuel distributor Ipiranga, two ​people familiar with the process told Reuters ​on Monday.

Ultrapar Participacoes (UGP) could produce exceptional returns because of its solid growth attributes.

Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both Ultrapar Participacoes S.A. (UGP) and MPLX LP (MPLX).