DT Midstream: Another Sign Of An Old Bull Market

Long PlayerInvesting Group LeaderFollow5ShareSavePlay(9min)Comment(1)SummaryDT Midstream is currently priced for sustained high growth despite the cyclical nature of the midstream industry.DTM’s valuation appears stretched.Market optimism may be overlooking the risk of a cyclical downturn.The current risk/reward profile suggests asymmetric downside.The price/earnings ratio is unlikely to expand further. Growth (of the business) is likely to slow as the company scales.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » onurdongel/iStock via Getty Images Generally, midstream stocks follow upstream stocks even though the midstream business is seen as fairly steady. However, the growth rate of midstream companies can be affected by an upstream cyclical downturn because there is less need for additionalThis article was written byLong Player25.33K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this is not a recommendation to buy or sell a security. Investors are recommended to read all of the company's filings and press releases as well as do their own research to determine if the company fits their own investment objectives and risk portfolios.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.