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Energy Transfer LP (ET) Gains But Lags Market: What You Should Know

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Energy Transfer LP (ET - Free Report) closed at $12.88 in the latest trading session, marking a +0.31% move from the prior day. This change lagged the S&P 500's 0.33% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.

Heading into today, shares of the energy-related services provider had gained 7.09% over the past month, outpacing the Oils-Energy sector's gain of 6.24% and the S&P 500's gain of 5.67% in that time.

Energy Transfer LP will be looking to display strength as it nears its next earnings release. In that report, analysts expect Energy Transfer LP to post earnings of $0.36 per share. This would mark a year-over-year decline of 2.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.61 billion, up 24.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $103.55 billion, which would represent changes of -0.71% and +15.22%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Energy Transfer LP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.96% lower. Energy Transfer LP currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Energy Transfer LP has a Forward P/E ratio of 9.18 right now. For comparison, its industry has an average Forward P/E of 11.33, which means Energy Transfer LP is trading at a discount to the group.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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