QM · rank #2 · 2026-05-29

NGL

NYSE · $2.24B

verdict · CAUTION

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1 Return from 12 months ago to 1 month ago.	+424.84%
ROE TTM Return on equity, trailing 12 months.	+19.1%
Profit margin Net profit margin, trailing 12 months.	+4.5%
Market cap Size filter: > $500M required.	$2.24B
Anchor (recent) Close on 2026-04-29	$16.27
Anchor (far) Close on 2025-04-29	$3.10

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

NGL Energy Partners LP is a diversified midstream Master Limited Partnership (MLP) that provides crude oil logistics, water solutions, and natural gas liquids (NGLs) logistics services to producers and end-users in the United States.

Rationale

The strong momentum_12_1 and positive ROE, coupled with a recent strategic shift towards a more stable, fee-based water solutions business, suggest potential for continued outperformance.

Material risks

1High debt levels and sensitivity to commodity price fluctuations, particularly crude oil and NGLs, could negatively impact profitability and cash flow.
2The company reported a significant loss in Q4 fiscal 2026, missing analyst estimates, which could indicate underlying operational challenges despite revenue growth.

Verdict reasoning

While momentum and strategic focus are positive, high debt and recent earnings miss warrant careful consideration.